Wiley GAAP 2020

8ASC 250 ACCOUNTING CHANGES AND ERROR CORRECTIONS

• Perspective and Issues
  • Subtopics
  • Scope
  • Overview
  • Technical Alert
• Definitions of Terms
• Concepts, Rules, and Examples
  • Accounting Changes
  • Change in Accounting Principle
    • Preferability
    • Retrospective Application
    • Impracticability Exceptions
    • Example of Change from FIFO to LIFO
    • Indirect Effects of a Change in Accounting Principle
  • Disclosure of Effect of ASUs Not Yet in Effect
  • Disclosure of Proposed GAAP
  • Change in Accounting Estimate
    • Example of a Change in Accounting Estimate—Accounted for Currently and Prospectively
    • Example of a Change in Accounting Estimate Accounted for Currently
  • Change in Accounting Estimate Affected by a Change in Accounting Principle
  • Change in Reporting Entity
  • Error Corrections
    • Example of a Correction of an Error in Previously Issued Financial Statements
  • Evaluating Uncorrected Misstatements
    • Types of Misstatements
    • Misstatements from Prior Years
    • Guidance for SEC Registrants
    • Example—Analysis of Materiality of Misstatements Using the Rollover and Iron Curtain Approaches
  • Interim Reporting Considerations
  • Disclosures
  • 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 ...