
Classifying accounting changes and errors
• LO20–1 through LO20–6
Type of Adjustment
A. Change in accounting principle (reported retrospectively)
B. Change in accounting principle (exception reported prospectively)
C. Change in estimate
D. Change in estimate resulting from a change in principle
E. Change in reporting entity
F. Correction of an error
_____ 1. Change from expensing extraordinary repairs to capitalizing the expenditures
_____ 2. Change in the residual value of machinery
_____ 3. Change from FIFO inventory costing to LIFO inventory costing
_____ 4. Change in the percentage used to determine warranty expense
_____ 5. Change from LIFO inventory costing to FIFO inventory costing
_____ 6. Change from reporting an investment by the equity method due to a reduction in the percentage of shares owned
_____ 7. Change in the composition of a group of firms reporting on a consolidated basis
_____ 8. Change from sum-of-the-years’-digits
_____ 9. Change from FIFO inventory costing to average inventory costing
_____ 10. Change in actuarial assumptions for a defined benefit pension plan

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Chapter 20 Solutions
INTERMEDIATE ACCOUNTING
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