Problem 1: Provide some examples of accounting estimates. What is the "preferred" approach for changes in accounting estimates?
Problem 2: What is the proper treatment for reporting a change in entity?
Problem 3: 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?
Problem 4: What are changes of accounting principle? Which does FASB require companies to use?