Wiley GAAP 2021, 2nd Edition

8ASC 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. Exhibit—Application of Retrospective Method
      4. Impracticability Exceptions
      5. Example of Change from FIFO to LIFO
      6. Indirect Effects of a Change in Accounting Principle
   3. Disclosure of Effect of ASUs Not Yet in Effect
   4. Disclosure of Proposed GAAP
   5. Change in Accounting Estimate
      1. Example of a Change in Accounting Estimate—Accounted for Currently and Prospectively
      2. Example of a Change in Accounting Estimate Accounted for Currently
   6. Change in Accounting Estimate Affected by a Change in Accounting Principle
   7. Change in Reporting Entity
   8. Error Corrections
      1. Example of a Correction of an Error in Previously Issued Financial Statements
   9. Evaluating Uncorrected Misstatements
      1. Types of Misstatements
      2. Misstatements from Prior Years
      3. Guidance for SEC Registrants
      4. Example—Analysis of Materiality of Misstatements Using the Rollover and Iron Curtain Approaches
   10. Interim Reporting Considerations
   11. Disclosures
   12. 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 ...