|
U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
|
U.S. GAAP
Codification of Accounting Standards |
| 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 |
| U.S. GAAP by Topic |
| Accounting Topics |
| Copyright © CPAclass.comTM Legal Disclaimer |