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What are the major reasons why companies change accounting methods? Provide an example of a company that have changed their accounting methods in recent years and explain why?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2GI

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What are the major reasons why companies change accounting methods?
Provide an example of a company that have changed their accounting methods in recent years and explain why?

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In recent years, the Wall Street Journal has indicated that many companies have changed their accounting principles. What are the major reasons why companies change accounting methods? Provide an example of a company that have changed their accounting methods in recent years and explain why.
In recent years, the Wall Street Journal has indicated that many companies have changed their accounting principles. What are the major reasons that companies change accounting methods?
c. In recent years, the financial press has indicated that many companies have changed their accounting policies. i. What are the major reasons why companies change accounting policies? ii. Discuss briefly the three approaches that have been suggested for reporting changes in accounting policies.
What is a chance recently implemented by FASB that required a company to change its accounting principal? How did it impact the companies financial statements?
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How can the enhancing characteristic timeliness be improved in high-quality accounting information? Do not simply repeat what it is, provide suggestions as to how a particular part of the enhancing characteristic could be improved. Please provide different answers and explanations than copy and pasting: “Timeliness matters for accounting information because it competes with other information. For example, if a company issues its financial statements a year after its accounting period, users of financial statements would find it difficult to determine how well the company is doing in the present.”
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