Memorize this for Intermediate 2

Change from the straight line method of depreciation to the sum of the years digits

change in accounting estimate: currently and prospectively

change from the cash basis to the accrual basis of accounting

correction of error: restatement of financial statements of all prior periods presented, adjust beginning retained earnings of current period

change from fifo to lifo method for inventory

change in accounting principle, no restatement, base inventory is opening inventory for period

change from presentation of statements of individual to consolidated

change in accounting entity: retrospective restatement of financial statements for all prior periods presented, adjustment of beginning re

change due to failure to record depreciation

correcrtion of error: restatement of financial statements of the period affected, prior period adjust, beg of re current

change in relizabilty of certain receviables

change in accounting estimates, current and prospectivlty

change in LIFO and FIFO method for inventory valuation purposes

change in accounting principles, retrospective restatement of all affected prior financial statements

independent errors and corrections

• if something charged to expense, failed to accrue, overstated depreciation - IS, BS (2028)= understated, IS,BS (2029) = overstated, 0(BS)

• if ending inventory overstated, IS,BS (2028)=overstated, IS (2029)=underted, 0