Recognition of Accounting Changes or Corrections

question 63

Essay

Recognition of accounting changes or corrections
For each of the following items, indicate the type of accounting change and how each is recognized in the accounting records in the current year.
1. Change from straight-line method of depreciation to double declining balance method
2. Change from the cash basis to the accrual basis of accounting
3. Change from FIFO to weighted average cost method for inventory valuation purposes
4. Change due to failure to record depreciation in a previous period
5. Change in the net realizable value of certain receivables

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Definitions:

Brand Image Damage

The harm or negative impact on a company's reputation, often resulting from controversial incidents, poor customer experiences, or negative media coverage.

British Airways

A major international airline based in the United Kingdom, known for its global flight operations and extended network.

Core Competencies

Essential capabilities or advantages that a business has, which gives it a competitive edge over others in its industry.

Product Design

The process of creating a new product to be sold by a business to its customers, prioritizing functionality, appearance, and user experience.