【精品文献】6. Change in Accounting Policy - Example.pdfVIP

Change in Accounting Policy - Example Pluto Limited commenced business in 2010 and changed its accounting policy in 2012 on inventory valuation. Up to 2011, it adopted a weighted average cost method but it changed to first-in-first-out from 2012 onwards. The effects of such a change on inventory valuation were: 2010 Increase of $10,000 2011 Increase of $15,000 2012 Increase of $22,000 The income statements prior to adjustment were : 2012 2011