Reference no: EM13370251

The four kinds of accounting changes, including error correction, are

change in accounting principle;
change in accounting estimate;
change in reporting entity; and
error correction.

Required:
The subsequent are a series of situations. Show the type of change
1 Changing the companies incorporated in combined financial statements
2 Change in both acceptable and estimate accounting principles
3 Change from showing nonconsolidated to consolidated financial statements
4 Change from FIFO to LIFO inventory processes
5 Change in amortization period for intangible asset
6 Change due to failure to identify an accrued (uncollected) revenue
7 Change due to charging a new asset directly to an expense account
8 Change due to under-statement of inventory
9 Change from straight line to sum-of-the-years'-digits method of depreciation
10 Change in residual value of a depreciable plant asset
11 Show change in the loss rate on warranty costs
12 Change in life of a depreciable plant asset
13 Change due to failure to identify and accrue income
14 Change in expected recovery of an account receivable
15 Change from expensing to capitalizing certain costs, due to a modification in periods benefited