Int. Actg cdn Chapter 22 Exercise Solutions

Int. Actg cdn Chapter 22 Exercise Solutions - & $37(5...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview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n Handbook Section 1506, a revision of amortization policy due to changes in the expected pattern of benefits is identified as a change in estimate. Since the change was made at the beginning of the year, the new accounting policy would be applied to 2005 and prospective years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x ,IWKHFKDQJHLVGXHWRFKDQJHGFLUFXPVWDQFHVIRUH[DPSOH WKHW\SHVRIDVVHWVKDYHFKDQJHGDQGWKHXVDJHRIWKHQHZ DVVHWVLVEHWWHUUHIOHFWHGE\VWUDLJKWOLQHDPRUWL]DWLRQWKHQ WKHFKDQJHZRXOGEHWUHDWHGSURVSHFWLYHO\ x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
View Full Document

This note was uploaded on 09/17/2008 for the course ACTG 3P33 taught by Professor N-a during the Spring '08 term at Brock University.

Ask a homework question - tutors are online