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2#
发表于 2011-7-11 17:59
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If the change in estimate is not considered material in the year of change, disclosure is not necassary.
Changes in ordinary accounting estimates (i.e. uncollectible accounts and inventory adjustments), usually made each period do not have to be disclosed unless material.
If it's material, meaning that it will affect future financials, disclosure is necassary.
Did they specify this in the question?
Note: Exceptions to the GR
1) A change TO LIFO from any other inventory cost flow assumptions, even though is a change in accounting principle, is treated as a change in estimate because it's impracticable to estimate (might be an easy point on the exam)
2) change in the method of depr (DDB to SL), amtz, or depletion is now considered both a change in principle and estimate. However, these changes should be accounted for as changes in estimates and are handled prospectively.
3) Changes in acc't principle that are inseparable from a change in estimate (e.g change from installment method to immediate recognition because uncollectable amounts can now be estimated) is treated as a change in estimate and is accounted for prospectively. |
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