内容文本参考课件iachap.pptxVIP

McGraw-Hill/Irwin;Accounting Changes;Correction of an Error;Accounting Changesand Error Corrections;Error Corrections and Most Changes in Policies;The Retrospective Approach;Changes in Estimates;;Accounting standards present some choices to companies with respect to accounting policies.;Motivation for Accounting Choices;Retrospective Approach Most Changes in Accounting Policies;Revise Comparative Financial Statements;;;;January 1, 2011: Inventory ....................................................... 400,000,000 Retained earnings ............................... 320,000,000 Deferred tax liability……….………..…. 80,000,000 To increase inventory, retained earnings, and deferred tax liability as a result of the change from weighted average to FIFO.;Disclosure Notes;Prospective Approach Some Changes in Policies;Prospective Approach Some Changes in Policies;Prospective Approach Some Changes in Policies;A change in depreciation method is not a change in policy but a change in the expected pattern of consumption of benefits of an asset, therefore, we account for such a change prospectively; that is, precisely the way we account for changes in estimates.; On January 1, 2008, Towing Ltd purchased specialized equipment for $243,000. The equipment has been depreciated using the straight-line method and had an estimated life of 10 years and salvage value of $3,000. At the end of 2011 the total useful life of the equipment was revised to 6 years. Calculate the 2012 depreciation expense. ;Universal Semiconductors switched from SYDdepreciation to straight-line depreciation in 2012. The asset was purchased at the beginning of 2010for $63 million, has a useful life of 5 years andan estimated residual value of $3 million.;Changing Depreciation Methods;Depreciation adjusting entryfor 2012, 2013, and 2014.;APPLICATION OF ACCOUNTING POLICIES TO DIFFERENT OR NEW TRANSACTIONS, CONDITIONS, AND EVENTS;APPLICATION OF ACCOUNTIN