ACC 309 6-1 Discussion_article review.docx - HIS 100 | Module 6 6-1 Discussion Article Review \u201cReporting Changes and Their Multi-period Effects\u201d I

ACC 309 6-1 Discussion_article review.docx - HIS 100 |...

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HIS 100 | Module 6 6-1 Discussion: Article Review “Reporting Changes and Their Multi-period Effects” I think it’s important to report any major impact of a change that effects the financial statements. These changes can affect how investors see the business and this will determine if they would want to invest in the future of the company. From what I gathered from the article there are two important conclusions, for one, a disclosure that reconciles income under the old and new accounting method is rather more effective than a simple non-quantitative disclosure of the accounting change would be. Two, accounting changes have multi-period effects on investor decisions and with that added subsequent-period disclosures alleviate those effects (Emett, 2017). Therefore, in my opinion, I believe the multi-period disclosure of accounting changes can be more useful to investors than other users. Firstly, due to the impact on financial statements analysis of contrary methods of
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