6-1 Discussion: Article Review: "Reporting Accounting Changes and Their Multi-period Effects" A disclosure that reconciles income under the old and new accounting method is somewhat more effective than is a simple non-quantitative disclosure of the accounting change. Secondly, accounting changes have multi-period effects on investor judgments, and that additional subsequent-period disclosures mitigate those effects (Emmett, 2017). The multiperiod disclosure of accounting changes can be extremely useful to investors. The main impact on financial statement analysis of differing methods of accounting for specific transactions and of disclosing the effects of those changes. This impact can have a influence on investing and daily operational decisions. Financial statement analysis presumes the consistency and comparability of financial statements across periods and entities within industry groupings. Any type of accounting change potentially can create inconsistency, since
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- Fall '15