Under U.S. GAAP, when can companies record a change in estimate? (RE&CF 1) Only when FASB has issued a new rule that required the change Only to correct an error in previously issued financial statements Companies should not record these changes due to the confusion it causes investors. Only when the company can justify the change as preferable to current treatment
Under U.S. GAAP, when can companies record a change in estimate? (RE&CF 1) Only when FASB has issued a new rule that required the change Only to correct an error in previously issued financial statements Companies should not record these changes due to the confusion it causes investors. Only when the company can justify the change as preferable to current treatment
Chapter4: Ethical Responsibilities Of Accountants
Section4.8: Dell Inc.
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Accounting estimation is an integral part of financial reporting, as many financial statement items are based on estimates. The use of estimates is necessary to account for the uncertainties inherent in business operations.
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