A change that is not trivial in nature, as it is a change in the Implementing of a generally accepted accounting principle different from the one formerly used. In business a company can often select from two or more accepted accounting principles, reporting the changes as an adjustment to the retained earnings’ opening balance for the earliest accounting period presented . However, if multiple changes in principle are made, the previous years’ financial statements must be revised to show what that information would be with the new principles in use. The purpose and justifications for any principle change must be disclosed. An example of a change in accounting principles is changing inventory systems, from FIFO basis to another inventory system.
What is CHANGE IN ACCOUNTING PRINCIPLE?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- What is a statute of limitations and how long does it last?
- What is the Fair Housing Act and who does it protect?
- How Long is a Life Sentence?
- What is Entrapment?
- A Guide to the Types & Classes of Bankruptcy
- A Simple Guide to Medicare vs Medicaid
- What are the Miranda Rights?
- Property Management Law
- How Arbitration Works
- What is the Fourth Amendment?
- What Is A Police Welfare Check?
- Best Way to Find Someone in Jail for Free
- How to Transfer a Car Title When The Owner Is Deceased
- How To Find A Name & Address Using A License Plate Number
- Why Do Policemen Touch Your Tail Light When They Pull You Over?
- What Can You Do At 18 Legally?
- Best Way to Write a Professional Letter to a Judge
- How To Find An Inmate’s Release Date
- Signing a Letter on Someone Else’s Behalf
- How Do You Look up License Plate Numbers?