Description:
A company's financial statements sometimes report significantly different results from year to year. This may be due to changes in economic circumstances, but it may also be due to changes in accounting methods or corrections of errors in recording past transactions. Changing the accounting method used can have dramatic impact on a company's financial statements. This course covers the accounting, reporting, and disclosures associated with changes in accounting principles (method), estimates, and reporting entities as stipulated in ASC 250-10-05, Accounting Changes and Error Corrections: Overall (FAS-154, Accounting Changes and Error Corrections -- A Replacement of APB Opinion No. 20 and FASB Statement No. 3).
Learning Objectives:
1. Recognize the different types of accounting changes.
2. Identify the accounting changes and disclosures necessary for changes in inventory method
3. Recognize a change in a reporting entity and the effect of a change in accounting estimate.
4. Identify examples of a correction of an error in previous financial statements and analyze the effect of errors.
Topics Covered:
- Change in Accounting Principle (Method
- Change in Accounting Estimate
- Change in Reporting Entity
- Error Corrections
- Required Disclosure for Error Restatements
- Summary of Guidelines for Accounting Changes and Errors
- Types of Accounting Errors
- ASC, FASB, and Difference between GAAP and IFRS
Category: Accounting and Auditing
Field of Study: Accounting
Delivery Method: Online
Level: Basic to Intermediate
Prerequisites: Basic Accounting
Passing Score: 70%
NASBA: Yes, QAS Self Study
Author: Delta Publishing
ABOUT THE SUBJECT MATTER EXPERT:
Dr. Jae K. Shim is Professor of Business at California State University, Long Beach,
California. Dr. Shim received his MBA and Ph.D. degrees from the University of California at Berkeley (Haas School of Business.) He has co-authored over 50 professional business books and has been a consultant to commercial and nonprofit organizations for over 30 years.
