SimplyCPA
Quick Sheets/FAR/Accounting Changes & Error Corrections

FAR — Quick Sheet

Accounting Changes & Error Corrections

Read time: ~5 minutes

One-minute revision

  • Change in principle → retrospective (restate prior periods)
  • Change in estimate → prospective (current + future only)
  • Change in reporting entity → retrospective
  • Change in depreciation method = change in estimate (prospective) — classic trap
  • Error correction → restate prior periods, adjust opening retained earnings