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Current GAAP Defines Three Types of Changes

question 92

Essay

Current GAAP defines three types of changes:
a.Changes in accounting principle
b.Changes in accounting estimate
c.Changes in reporting entity
Define each item, give an example, and describe how it should be accounted for.


Definitions:

Investigative Interview

A structured conversation aimed at gathering information and insights, typically used in the context of legal, disciplinary, or compliance matters.

Disciplinary Action

Procedures or measures taken by an organization against employees who violate company policies or engage in misconduct.

Employee Misconduct

Behavior by an employee that is inappropriate or violates company policies or norms, potentially leading to disciplinary action.

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