Accounting Changes
Response to the following problem:
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.