A change in accounting estimate affected by a change in accounting principle should be reported as
A) a change in accounting principle.
B) a change in accounting estimate and a change in accounting principle.
C) a change in accounting estimate.
D) neither a change in accounting estimate nor a change in accounting principle.

Question

Quizplus · Accepted Answer

A change in accounting estimate that is affected by a change in accounting principle is reported as a change in accounting estimate. This is because the change in principle is inseparable from the change in estimate, and the effect is treated as if it were a change in estimate alone.

A Change in Accounting Estimate Affected by a Change in Accounting