FAR

Question 1

The effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate should be reported:

Answer 1

As a component of income form continuing operations, in the period of change and future periods if the change affects both

Question 2

How is a change in an accounting estimate reported?

Answer 2

Prospectively

Question 3

How is change in accounting principle reported?

Answer 3

• Cumulative effect of change is included in the retained earnings statement as an adjustment to the beginning retained earnings balance of the earliest year presented.
  -Prior period financial statements are restated, if presented.

Question 4

Not-for-profit corporations are required to produce the following financial statements:

Answer 4

Statement of financial position
Statement of activities
Statement of cash flows

Question 5

How should the effect of a change in accounting estimate be accounted for?

Answer 5

In the period of change and future periods if the change affects both