INTERMEDIATE ACCOUNTING
8th Edition
ISBN: 9780078096488
Author: SPICELAND
Publisher: MCG
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Question
Chapter 4, Problem 4.10Q
To determine
Accounting changes:
Accounting changes are the differences in accounting principles, accounting estimates or the reporting entity.
To describe: The period(s) in which the effect of changes in accounting estimate reported.
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Students have asked these similar questions
Accountants very often are required to make estimates, and very often those estimates prove incorrect. In what period(s) is the effect of a change in an accounting estimate reported?
Where a change in accounting estimates occurs, which
of the following should be disclosed?
A.
The nature of the change and the impact on
previous income statements
The fact that the amount of the effect on future
periods will not be disclosed because
B. estimating that amount is impracticable and the
reason for the change and comparative data to
show the impact with and without the change
The fact that the amount of the effect on future
C. periods will not be disclosed because
estimating that amount is impracticable
D.
The reason for the change and comparative
data to show the effect with and without the
change
When it is difficult to distinguish between a change in accounting estimate and a change in accounting policy, the change is treated as:
a. Change in accounting estimate with appropriate disclosure
b. Change in accounting policy
c. Correction of error
d. Change in accounting estimate with no appropriate disclosure
Chapter 4 Solutions
INTERMEDIATE ACCOUNTING
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - The correction of a material error discovered in a...Ch. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - Prob. 4.9Q
Ch. 4 - Prob. 4.10QCh. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.19QCh. 4 - Prob. 4.18QCh. 4 - Prob. 4.20QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Multiple -step income statement LO41, LO43 The...Ch. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - E 4–16
Statement of cash flows; directly from...Ch. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Prob. 4.25ECh. 4 - Prob. 4.26ECh. 4 - Prob. 4.27ECh. 4 - Prob. 4.28ECh. 4 - Prob. 1CPACh. 4 - Prob. 2CPACh. 4 - Prob. 3CPACh. 4 - Prob. 4CPACh. 4 - Prob. 5CPACh. 4 - Prob. 6CPACh. 4 - Prob. 7CPACh. 4 - Prob. 1CMACh. 4 - Prob. 2CMACh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.10PCh. 4 - Prob. 4.11PCh. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYPCh. 4 - Prob. 4.4BYPCh. 4 - Prob. 4.5BYPCh. 4 - Prob. 4.6BYPCh. 4 - Prob. 4.7BYPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Prob. 4.9BYPCh. 4 - Prob. 4.10BYPCh. 4 - Prob. 4.12BYPCh. 4 - Prob. 4.13BYPCh. 4 - Prob. 1AFKC
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Similar questions
- The change in accounting estimate should be treated currently and prospectively. True or falsearrow_forwardWhen it is difficult to distinguish a change in accounting policy from achange in an accounting estimate, the change is treated as A. Change in accounting estimate with appropriate disclosureB. Change in accounting policyC. Correction of an errorD. Initial adoption of an accounting policyarrow_forwardDiscuss how a change in accounting policy is handled when it is impracticable to determine previous amounts.arrow_forward
- What are interim reports? Why is a complete set of financial statements often not provided with interim data? What are the accounting problems related to the presentation of interim data?arrow_forwardWhat impact may the low accuracy of accounting estimates have on the annual statements?arrow_forwardWhy should the beginning retained earnings be adjusted for prior period errors and effects of change in accounting policy?arrow_forward
- If it is material, which of the following does not require all prior reported financial statements and/or retained earnings to be changed or adjusted? Group of answer choices Change in an accounting principle. Change in an estimate. Correction of an accounting error. The correct answer is not listed. Change in a reporting entity. Nextarrow_forwardWhich of the following is not classified as an accounting change by IFRS? a. Change in accounting policy. b. Change in accounting estimate. c. Errors in financial statements. d. None of the above.arrow_forwardWhich of the following statements regarding accounting change is correct? a. Change in depreciation method is accounted for as a change in accounting policy. b. Change in accounting estimate is accounted for in current and future periods. c. The categories of accounting changes are change in accounting estimate and correction of prior period error. d. A switch from the direct write-off method to the allowance method of accounting for bad debts is an example of change in accounting policy.arrow_forward
- Why is retrospective treatment of changes in accounting estimatedprohibited? A. Changes in estimate are normally corrections and adjustments which are the natural result of the accounting process B. The retrospective treatment for any type of presentation is not allowed C. Retrospective treatment of changes in accounting estimate is required by IFRS D. The IFRS is silent on the issuearrow_forwardWhat are erros that are automatically corrected in the next accounting period, even if they're not discovered. A. Non-counterbalancing errors, B. Prior period adjustments, C. Changes in accounting principle, or D. Counterbalancing erros.arrow_forwardProspective application of recognizing the effect of a change in an accounting estimate means A. correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occured B. recognizing the effect of the change in the accounting estimate in the current and future periods affected by the change C. applying a new accounting policy to transactions other events and conditions as if the policy had always been applied D. Any of the choicesarrow_forward
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