One of the major issues companies and accountants face is how to reflect changes in accounting methods and error corrections in financial statements. This course provides a comprehensive overview of accounting requirements with respect to accounting changes and error corrections and the related reporting implications within an entity's financial statements. The scope of accounting changes includes a discussion of changes in accounting principles and changes in accounting estimates, as well as changes of a reporting entity. The course also provides an overview of the accounting requirements of correcting errors in previously issued financial statements as well as restatement considerations. A majority of the information included within this course is sourced from the requirements found within FASB ASC Topic No 250, Accounting Changes and Error Corrections.
Learning Objectives
Upon successful completion of this course, participants will be able to:
List the different types of accounting changes and how they affect an entity's financial statements
Differentiate between the requirements for the different types of accounting changes
Identify the steps involved in the required assessment for a correction of an error
Differentiate between the iron curtain and rollover methods for quantifying a correction of an error
Recognize the different types of restatements required as a result of accounting changes
Major Topics
Changes in Accounting Principle
Accounting for the Change in Accounting Principle
Justifying a Change in Accounting Principle
Change in Accounting Principle
Disclosures Required for Changes in Accounting Principles
Change in Accounting Estimate
Change in Reporting Entity
Accounting for Correction of Errors
Internal Control Considerations
Accounting Standards Updates
