Changes in Accounting Principle

Changes in Accounting Principle - CHANGES IN ACCOUNTING...

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CHANGES IN ACCOUNTING PRINCIPLE For ease of comparison, users of financial statements expect companies to prepare such statements on  a basis  consistent  with the preceding period.  change in accounting principle  occurs when the  principle used in the current year is different from the one used in the preceding year.  An example is  a change in inventory costing methods (such as FIFO to average cost). Accounting rules permit a  change when management can show that the new principle is preferable to the old principle. 
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.

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