Change in Estimate, Voluntary Change in Accounting Policy, Correction of Errors

question 15

Essay

Change in estimate, voluntary change in accounting policy, correction of errors
Give examples and discuss the accounting procedures and disclosure required for the following:
1. Change in estimate
2. Voluntary change in accounting policy
3. Correction of an error

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Definitions:

Employment-at-will Doctrine

A legal principle stating that an employment relationship can be terminated at any time by either the employer or the employee, for any reason not prohibited by law.

Family and Medical Leave Act

U.S. legislation that grants eligible employees the right to take unpaid, job-protected leave for specified family and medical reasons.

Paid Leave

Employer-provided time off work that is compensated, including for reasons such as vacation, illness, or family care.

Leave Time

An allotted period of time during which an employee is allowed to be away from work, often for specific reasons such as health or personal matters.