Chapter 20, Problem 20.3BYP

(1)

To determine

Accounting changes:

Accounting changes can be implemented as retrospectively (revision in prior period statements) or prospectively (change in current and future periods) or by modified retrospective approach (affect a new standard only to the implementation period).

Accounting change can be classified as:

• Changes in accounting principle.
• Changes in estimate.
• Changes in reporting entity.

To discuss: The actions considered towards softening the wrong issues.

(2)

To determine

To identify: The ethical dilemma and the likely impact of following up on thoughts of Person J and the persons who would be benefited and injured.