Explain How Changes in Accounting Policies, Changes in Accounting Estimates

question 87

Essay

Explain how changes in accounting policies, changes in accounting estimates and errors are accounted for under the accrual basis of accounting.

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Definitions:

Compilations

Collections of documents, data, or other materials that are gathered and arranged systematically.

Restatements

Collections of uniform legal principles in specific areas of law that aim to clarify, modernize, and otherwise improve the law, produced by legal scholars and experts.

Morality

A set of principles or standards of behavior that guide the distinction between right and wrong or good and bad behavior.

Ethics

The branch of philosophy that deals with issues of right and wrong in human affairs.