Ex. 21-52Retrospective application for accounting changes
Discuss how retrospective application for accounting changes would be applied.
Ex. 21-53 Recognition of accounting changes or corrections
For each of the following items, indicate the type of accounting change and how each is recognized in the accounting records in the current year.
1.Change from straight-line method of depreciation to double decliningbalance method
2.Change from the cash basis to the accrual basis of accounting
3.Change from FIFO to weighted average cost method for inventory valuation purposes
4.Change due to failure to record depreciation in a previous period
5.Change in the net realizable value of certain receivables