Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

9   ASC 250 ACCOUNTING CHANGES AND ERROR CORRECTIONS

Perspective and Issues

Subtopics

Scope

Overview

Technical Alert

Definitions of Terms

Concepts, Rules, and Examples

Accounting Changes

Summary of Accounting Changes and Error Corrections

Change in Accounting Principle

Preferability

Retrospective application

Example of retrospective application of a new accounting principle

Impracticability exception

Example of change from FIFO to LIFO

Example Note A: Change in method of accounting for inventories

Disclosure of Prospective Changes in GAAP

Disclosing the impact of newly established GAAP that has not yet become effective

Proposed GAAP

Reclassifications

Examples 1

Examples 2

Change in Accounting Estimate

Example of a change in accounting estimate

Example Note A: Change in accounting estimate

Example of a change in accounting estimate

Change in Accounting Estimate Effected by a Change in Accounting Principle

Change in Reporting Entity

Error Corrections

Example of a Prior Period Adjustment

Evaluating Uncorrected Misstatements

Types of misstatements

Misstatements from prior years

Guidance for SEC registrants

Example

Interim Reporting Considerations

Public companies

Going concern considerations

Disclosures about events subsequent to the date of the statement of financial position

Other Sources

PERSPECTIVE AND ISSUES

Subtopics

ASC 250, Accounting Changes and Error Corrections, contains one subtopic:

ASC 250-10, Overall, which:

• Provides guidance on accounting for and reporting on accounting ...