Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 9ASC 250 ACCOUNTING CHANGES AND ERROR CORRECTIONS

PERSPECTIVE AND ISSUES

   Subtopics

   Scope

   Overview

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   Accounting Changes

   Summary of Accounting Changes and Error Corrections

   Change in Accounting Principle

   Disclosure of Prospective Changes in GAAP

   Reclassifications

   Change in Accounting Estimate

   Change in Accounting Estimate Effected by a Change in Accounting Principle

   Change in Reporting Entity

   Error Corrections

   Evaluating Uncorrected Misstatements

   Interim Reporting Considerations

   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 changes and error corrections
• Requires, unless impractical, retrospective application of a change in accounting principle
• Provides guidance on when retrospective application is impractical and how to report on the impracticability.

ASC 250-10 also:

• Specifies the method of treating error correction in comparative statements
• Specifies the disclosures required upon restatement of previously issued statements of income
• Recommends methods of presentation of historical, statistical-type financial summaries affect by error corrections.

(ASC 250-10-5-5)

Scope

ASC 250 applies to all entities' financial statements and summaries of information that reflect an accounting period affected by accounting ...