Change to the LIFO method from the FIFO method is more associated with financial statements prepared in accordance with US GAAP than with international financial reporting standards
- A new Accounting Standard Update (ASU) may need mandatory adjustments, in which case a new accounting principle is applied, or. on the grounds that it is desirable, voluntarily switches from one accepted accounting theory to another.
What three categories of modifications are recognised by GAAP as accounting changes?
- Three different forms of accounting changes exist. These include modifications to reporting entities, modifications to accounting principles, and modifications to accounting estimations.
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