Response to the following questions:
1. What distinguishes a change in an accounting principle from a change in an estimate? How should a company account for each?
2. Give three examples of a change in an estimate. How does a company account for such changes?
3. In which situations may it be impracticable for a company to apply the retrospective adjustment method? What is the correct accounting in such cases?
If possible, please give examples to better understand your response.