This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: year reported. So, if retained earnings is one of the accounts whose balance requires adjustments due to a change in accounting principle, we must adjust the beginning balance of retained earnings for the earlier period reported in the comparative statements of shareholders’ equity. E20-9 According to our textbook, a change in depreciation methods is considered to be a change in accounting estimate that is achieved by a change in accounting principle. As a result, we account for such a change prospectively – precisely the way we account for changes in estimates....
View Full Document
This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.
- Spring '10