handout for class 12

handout for class 12 - a. Calculate the accumulative...

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Handout #11 for Bus321-Intermediate Accounting II Professor: Yasheng Chen Notes for BUS321 Class 12-13: Accounting Changes and Error Correction Learning objectives: 1. Identify different types of accounting changes 2. Understand and apply GAAP requirements to account for accounting changes. 3. Prepare journal entries to correct counter-balancing and non-counter-balancing errors. Key learning points: 1. Types of accounting changes a. b. c. 2. Methods for accounting for changes a. b. c. 3. Canadian GAAP requirements Type of Accounting Change Accounting Method Applied Adoption of primary source of GAAP (Mandatory Change in Accounting Policy) Other than a change made on adoption of a primary source (Voluntary Change in Accounting Policy) Changes in accounting estimates Errors 4. Retroactive with restatement for voluntary change in policy
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Unformatted text preview: a. Calculate the accumulative difference at the beginning of the year b. Change the beginning balance of the R/E and related B/S accounts c. Restate previous years statements included in comparatives 5. Retroactive without restatement (a.+b.) 6. Prospective Application 7. Types of errors a. b. c. Balance Sheet and Income Statement Errors 1 Handout #11 for Bus321-Intermediate Accounting II Professor: Yasheng Chen i. Counter-balancing ii. Non-counter-balancing 8. Counter-balancing error analysis and correction Books have been closed Books not been closed The error is already counterbalanced The error is not yet counterbalanced 9. Non-counter-balancing error analysis and correction 2...
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handout for class 12 - a. Calculate the accumulative...

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