Which of the following is not an example of a change in accounting principle?
A) A change in the useful life of a depreciable asset.
B) A change from LIFO to FIFO for inventory costing.
C) A change to the full costing method in the extractive industries.
D) A change to the equity method of accounting for investments.

Question

Quizplus · Accepted Answer

A change in the useful life of a depreciable asset is an example of a change in accounting estimate, not a change in accounting principle. Accounting estimates are based on new information or a reassessment of existing information and are reflected in current and future periods, while changes in accounting principles affect prior periods. The other options (B, C, and D) all represent changes in accounting principles.

Which of the Following Is Not an Example of a Change