The change in accounting estimate should be treated currently and prospectively. True or false
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- What are the implications of a revised accounting estimate?How do you make adjustments for a non-counter balancing error and does it affect the present financial statements?A change in accounting policy requires what kind of adjustment to thefinancial statements? A. Current period adjustmentB. Prospective adjustmentC. Retrospective adjustmentD. Current and prospective adjustment
- Would a change from Completed Contract to Percentage of Completion be a change in accounting principle- or a change of estimate?How would it be applied?What is the difference between reporting accounting changes, changes in estimates, and error corrections. Provide an example of each and discuss the effect on the financial statements.How is a correction of an accounting error made?
- How should correction of errors be reported in the financialstatements?Which of the following is not one of the suggested approaches to reporting changes in the accounts? a. current period. b. retrospective. c. prospective. d. selective period.How should a change in accounting estimate be recognized and disclosed in the financial statements?