Accounting Changes The various types of accounting changes may significantly affect the presentation of a company’s financial statements, and also affect the trends shown in its comparative financial statements and historical summaries Required 1. Explain a change in accounting principle and how a company reports it in the period of the change. 2. Explain a change in accounting estimate and how a company reports it in the period of the change. 3. Explain a change in reporting entity and how a company reports it. Give an appropriate example of a change in reporting entity
Accounting Changes The various types of accounting changes may significantly affect the presentation of a company’s financial statements, and also affect the trends shown in its comparative financial statements and historical summaries Required 1. Explain a change in accounting principle and how a company reports it in the period of the change. 2. Explain a change in accounting estimate and how a company reports it in the period of the change. 3. Explain a change in reporting entity and how a company reports it. Give an appropriate example of a change in reporting entity
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports On Financial Statements
Section: Chapter Questions
Problem 45RSCQ: The accounting and auditing literature discusses several different types of accounting changes. For...
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Accounting Changes
The various types of accounting changes may significantly affect the presentation of a company’s financial statements, and also affect the trends shown in its comparative financial statements and historical summaries
Required
1. Explain a change in accounting principle and how a company reports it in the period of the change.
2. Explain a change in accounting estimate and how a company reports it in the period of the change.
3. Explain a change in reporting entity and how a company reports it. Give an appropriate example of a change in reporting entity
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