Wiley GAAP 2018, 16th Edition

9ASC 250 Accounting Changes and Error Corrections

1. Perspective and Issues
   1. Subtopics
   2. Scope
   3. Overview
   4. Technical Alert
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Accounting Changes
   2. Change in Accounting Principle
      1. Preferability
      2. Retrospective application
      3. Impracticability exception
      4. Example of change from FIFO to LIFO
      5. Example Note A: Change in method of accounting for inventories
      6. Disclosure of Prospective Changes in GAAP
   3. Reclassifications
   4. Change in Accounting Estimate
      1. Example of a change in accounting estimate—current and prospective method
      2. Example of a change in accounting estimate
   5. Change in Accounting Estimate Effected by a Change in Accounting Principle
   6. Change in Reporting Entity
   7. Error Corrections
      1. Example of a correction of an error in previously issued financial statements
   8. Evaluating Uncorrected Misstatements
      1. Types of misstatements
      2. Misstatements from prior years
      3. Guidance for SEC registrants
      4. Example
   9. Interim Reporting Considerations
      1. Change in Accounting Principle
      2. Corrections of Errors
   10. Disclosures
   11. 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 250-10-05-2 and 05-3)

ASC ...