However change is inevitable so the challenge is to present the effects of the

However change is inevitable so the challenge is to

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to present the effects of the change in a manner that is most readily comprehended by users of financial statements. Therefore, as investors, they not only would prefer to know the results they see, but also where and how those results come from. The more that investors know, the more that they will be happy and can make an appropriate and good decision. Also, because changing an accounting principle is different from changing an accounting estimate or reporting entity. Accounting principles impact the methods used, whereas an estimate refers to a specific recalculation. Sometimes for investors and other users of financial statements the changes in accounting principles can be confusing to read and understand. Adjustments look very similar to error corrections, which can be off-putting for investors. Recording any
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change in accounting principles early would reduce unnecessary trouble in work but it can improve the efficiency of follow-up work. Emett, S., & Nelson, M. (2017, February). Reporting accounting changes and their multi-period effects. Retrieved from 1368217300144?via=ihub. Hall, J., & Aldridge, R. (2007, February 1). Changes in Accounting for Changes. Retrieved from ntingforchanges.html.
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