Explain Why a Change in Accounting Policy Requires the Adjustment

question 75

Essay

Explain why a change in accounting policy requires the adjustment of both prior and future periods, whereas a change in estimate requires only adjustment of current and future periods.

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Definitions:

Storytelling

The art of conveying messages, values, or information through narrative and story, used in various contexts including marketing and leadership.

Best Practices

Proven methods or strategies that consistently show results superior to those achieved with other means, and are used as benchmarks.

Parallel Dimensions

Conceptual, theoretical spaces or universes that exist simultaneously and independently of each other, often used in physics and science fiction.

Selling

The act of convincing a person to purchase a good or service.