The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.


Definition & Citations:

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.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.