Stone Company changed its method of pricing inventories from FIFO to LIFO. What type of accounting change does this represent?
A) A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.
B) A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.
C) A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be restated.
D) A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be restated.

Question

Quizplus · Accepted Answer

Changing from FIFO to LIFO is a change in accounting principle, and prior period financial statements should be presented as previously reported, not restated.

Stone Company Changed Its Method of Pricing Inventories from FIFO