U.S. GAAP Codification of Accounting Standards

U.S. GAAP Codification Accounting Standards, ASC



U.S. GAAP Codification of Accounting Standards
Codification Topic 2
50: Accounting Changes and Error Corrections


U.S. GAAP Codification Updates
Principles of Accounting Intermediate Accounting Advanced Accounting
Accounting Terms


Codification Topic 250
Accounting Changes and Error Corrections



Accounting Changes and Error Corrections

SFAS 154, May 2005
"Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3"

Change in accounting principle
1. "Retrospective" application
--> Apply new accounting principle
--> to all prior periods presented
2. At the beginning of the first period presented
--> Cumulative effect will be reflected on the beginning balances
--> of assets, liabilities, and retained earnings
3. Balances of all prior and current periods reflect 
--> the effect of change in accounting principle
4. If it is impracticable
--> apply at the beginning of the earliest period possible

Change in accounting estimate
1. "Prospective" application
--> Apply to current and future periods only
2. Do not apply retrospectively
3. Change in depreciation method is
--> a change in accounting estimate
4. If the effects of (A) and (B) are "inseparable"
--> Total amount is considered as (B)
(A) change in accounting principle
(B) change in accounting estimate

Change in reporting entity
1. Retrospective application
--> Apply to all prior periods presented
--> in the financial statements of new reporting entity

Correction of prior-period error
1. Retrospective "restatement"
--> Prior-period financial statements are restated
2. At the beginning of the first period presented
--> Cumulative effect will be reflected on the beginning balances
--> of assets, liabilities, and retained earnings
3. Balances of all prior and current periods reflect 
--> the effect of error corrections
4. Materiality of errors is reviewed with reference to
--> the estimated "full fiscal year" income
5. Items material for (C), but not for (D) are
--> disclosed separately in the interim period
(C) interim period
(D) full fiscal year




   Codification Topic 250
   Accounting Changes and Error Corrections
 
Subtopics of Codification Topic 250
 
   250-10 Overall   
 
Accounting Terms of Codification Topic 250-10
 
   Accounting change
   Change in accounting estimate
   Change in accounting estimate effected by a change in accounting principle
   Change in accounting principle
   Change in the reporting entity
   Direct effects of a change in accounting principle
   Error in previously issued financial statements
   Indirect effects of a change in accounting principle
   Restatement
   Retrospective application   


   Other Topics at the Codification 200 
Accounting Standards Codification, ASC, Overview
 
ASC Codification Topic 205: Presentation of Financial Statements
 
ASC Codification Topic 210: Balance Sheet
ASC Codification Topic 215: Statement of Shareholder Equity
 
ASC Codification Topic 220: Comprehensive Income
ASC Codification Topic 225: Income Statement
 
ASC Codification Topic 230: Statement of Cash Flows
ASC Codification Topic 235: Notes to Financial Statements
 
ASC Codification Topic 250: Accounting Changes and Error Corrections
ASC Codification Topic 255: Changing Prices
 
ASC Codification Topic 260: Earnings per Share
 
ASC Codification Topic 270: Interim Reporting
ASC Codification Topic 272: Limited Liability Entities
ASC Codification Topic 274: Personal Financial Statements
ASC Codification Topic 275: Risks and Uncertainties
 
ASC Codification Topic 280: Segment Reporting


   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

U.S. GAAP by Topic
Accounting Topics


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