Berkley company a manufacturer of many different products

Reference no: EM13598414

Berkley Company, a manufacturer of many different products, changed its inventory method from FIFO to LIFO. The LIFO method was determined to be preferable. In addition, Berkley changed the residual values used in computing depreciation for its office equipment. It made this change on January 1, 2010 because it obtained additional information. On December 31, 2010, Berkley change the specific subsidiaries comprising the group of companies for which consolidated financial statements are presented.

REQUIRED:
What kind of accounting change is each of the preceding three situations? For each situation, indicate whether or not the company should show:

The retrospective application of a new accounting principle
The effects on the financial statements of the current and future periods
Restatement of the financial statements of all prior periods
Why does the company have to disclose a change in accounting principle?

Reference no: EM13598414

Questions Cloud

She considers the concert a resumebuilding experience and : your boss is about to submit a scope statement for a spring concert sponsored by the entertainment council at western

There are many inventory items past experience has shown : there are many inventory items. past experience has shown numerous errors both understatements and overstatements in

Sale of property received as a gift during the current year : sale of property received as a gift. during the current year stan sells a tract of land for 800000. the property was

Assume the dollar amounts given above are for the : assume the dollar amounts given above are for the equivalent of 40000 units produced during the year. compute the

Berkley company a manufacturer of many different products : berkley company a manufacturer of many different products changed its inventory method from fifo to lifo. the lifo

Ltpgtin eight years kent duncan will retire he is exploring : ltpgtin eight years kent duncan will retire. he is exploring the possibility of opening a self-service car wash. the

Three-quarters of all purchases are paid for in the month : pierce merchandising company expects to purchase 90000 of materials in march and 105000 of materials in april.

Will the bond proceeds always be greater than the face : maui blends inc. produces and sells organically grown coffee. on july 1 2012 maui blends inc. issued 2800000 of 7-year

Discuss the differences between accrual-basis financial : discuss the differences between accrual-basis financial statements and cash-basis financial statements. determine which

User Account

All Pages