Ex 21-47 Overall objectives of accounting and disclosure standards for accounting changes
What are the three main objectives of accounting and disclosure standards for accounting changes?
Ex. 21-48 Conditions for a change in accounting policy under IFRS and ASPE
What conditions are allowed for a change in accounting policy to be acceptable?
Ex. 21-49 Matching accounting changes to situations
The three types of accounting changes are:
a) Change in accounting policy
b) Change in accounting estimate
c) Error correction
Following are a series of situations. You are to enter a code letter to the left to indicate the type of change.
____ 1.Change due to debiting a new asset to an expense account.
____ 2.Change from FIFO to weighted average costing.
____ 3.Change due to failure to recognize unearned portion of revenue.
____ 4.Change in amortization period for an intangible asset.
____ 5Change in the calculation of warranty liabilities.
____ 6.Change due to failure to recognize and accrue income.
____ 7.Change in residual value of a depreciable plant asset.
____ 8.Change from an unacceptable accounting policy to an acceptable accounting policy.
____ 9.Adoption of a new accounting standard.
____ 10.Change due to expensing prepaid assets.
____ 11.Change from straight-line to double declining-balance method of depreciation.
____ 12.Change in estimated service life of a depreciable plant asset.
____ 13.Change from one acceptable policy to another acceptable policy.
____ 14.Change due to understatement of inventory.
____ 15.Change in estimated net realizable value of accounts receivable.