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Indicate the Nature of Each of the Following Situations

Question 151

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Indicate the nature of each of the following situations:

Premises:
Change from FIFO inventory costing to LIFO inventory costing.
Change from LIFO inventory costing to FIFO inventory costing.
Change in the composition of a group of firms reporting on a consolidated basis.
Change to the installment method of accounting for receivables.
Change in actuarial assumptions for a defined benefit pension plan.
Change from sum-of-the-years' digits depreciation to straight-line.
Change from expensing extraordinary repairs erroneously recorded as an expense to capitalizing the expenditures.
Change in the percentage used to determine warranty expense.
Change from reporting postretirement benefits according to the provisions of U.S. GAAP.
Change in the residual value of machinery.
Responses:
CPR: Change in principle reported retrospectively
CPP: Change in principle reported prospectively
CES: Change in estimate
CRE: Change in reporting entity
PPA: Prior period adjustment required

Correct Answer:

Change from FIFO inventory costing to LIFO inventory costing.
Change from LIFO inventory costing to FIFO inventory costing.
Change in the composition of a group of firms reporting on a consolidated basis.
Change to the installment method of accounting for receivables.
Change in actuarial assumptions for a defined benefit pension plan.
Change from sum-of-the-years' digits depreciation to straight-line.
Change from expensing extraordinary repairs erroneously recorded as an expense to capitalizing the expenditures.
Change in the percentage used to determine warranty expense.
Change from reporting postretirement benefits according to the provisions of U.S. GAAP.
Change in the residual value of machinery.
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