Explain the accounting for errors and changes in accounting principles and changes in accounting estimates
ACCOUNTING FOR ERRORS AND CHANGES IN ACCOUNTING PRINCIPLES
AND CHANGES IN ACCOUNTING ESTIMATES
Firms account for material errors in previously issued financial statements by retrospectively
restating net income of prior periods and adjusting the beginning balance in Retained Earnings
of the current period. If practical, firms also account for voluntary changes in accounting
principles, such as from a LIFO to a FIFO cost-flow assumption for inventories, by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period. Firms account for changes in accounting principles required by a new reporting standard in accordance with the guidance specified in the standard. Firms account for changes in estimates, such as for depreciable lives, uncollectible accounts, or warranty cost, prospectively, in current and future periods' earnings.
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Out-of-pocket costs are what the customer spends on regular maintenance and repair costs
Indicate whether the statement is true or false
Which of the following statements is true of the stakeholder model of corporate social responsibility?
A. It is based on the premise that a business is a private property, and like any private property, the owners get to decide what to do with it. B. It begins with the insight that every business decision affects a wide variety of people, benefiting some and imposing costs on others. C. It assumes that compliance with the law is sufficient for being an ethically responsible business. D. It appeals to such important ethical norms as utilitarianism and freedom because of its connection to the free enterprise system.
A company's employees had the following earnings records at the close of the current payroll period: Employees Earning through Prior Pay PeriodEarning this Pay PeriodF. Argent....$11,300$3,900A. Garza.......6,1002,500L. Hong..........9,5003,100R. Levinson...4,8001,400J. Young.......10,0003,000The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $127,200 of earnings plus 1.45% FICA Medicare on all wages; 0.6% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period.
What will be an ideal response?
With respect to #39, suppose Alice just sold her home 9 months after buying it to Robert Woolf. Which of the following describes Robert's rights?
A)?Robert does not have privity of contract and cannot recover for the dry wall issues from Talman. B)?Robert can recover from Talman for damages from the drywall issue. C)?Robert only has rights against the Chinese manufacturer. D)?Robert will just have to live with the drywall issue or fix it himself.