| FAS
No.
154
Supersedes
APB
Opinion
No. 20 Statement of Financial Accounting Standards No. 154--Accounting Changes and Error Corrections--A Replacement of APB No. 20 and FASB Statement No. 3 Major Changes:
|
class
illustration---change
in
principle Footnote disclosure example |
Review questions |
| Journal of
Accountancy article on
Accounting Changes (Feb., 2007) |
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| Accounting
changes--per APB Opinion 20. |
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|
(Not Changed
in FAS No. 154)
|
class illustration---change in accounting estimate | Review questions |
|
(Not Changed
in FAS No. 154)
|
Review questions | |
|
(Not Changed
in FAS No. 154)
|
class illustration--error corrections | Review questions |
This material presented only for historical perspective. |
class illustration---change in principle | Review questions |
| International
Convergence In May 2005, as part of the joint FASB-IASB effort to converge US GAAP and International Financial Reporting Standards, FASB issued FAS 154, Accounting Changes and Error Corrections, which superseded APB 20 and essentially conformed US GAAP practice to that under international standards (IFRS). FAS 154 requires retrospective application of a newly adopted accounting policy for most changes in accounting principle, including changes in accounting principle required by newly issued pronouncements. FASB did, however, retain the right to require different transition provisions for changes in accounting principle mandated by the future issuance of new pronouncements, should it deem such differences to be appropriate. In another significant alteration, FAS 154 also requires the reporting of a change in depreciation, amortization, or depletion method as a change in an accounting estimate rather than a change in principle, as had been required under APB 20. Source: Chapter
21
of
the
2006
Edition
of Wiley GAAP
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