Changes in Accounting principle exception

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  • August 31, 2014 at 12:50 am #188309
    Anonymous
    Inactive

    I have a question which is really spinning my brain.

    How will you know that a change in accounting principle is inseparable from a change in estimate?

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  • August 31, 2014 at 1:29 am #592135
    M.O.D.
    Member

    You have to memorize which are examples of which and how they are treated.

    Ie method of depreciation is a change in principle accounted for a change in estimate, etc.

    BA Mathematics, UC Berkeley
    Certificates in CPA and EA preparation, College of San Mateo
    CMA I 420, II 470
    FAR 91, AUD Feb 2015 (Gleim self-study)

    August 31, 2014 at 3:22 am #592136
    mystical guy
    Member

    I second MOD. It's a matter of memorizing the specific changes that are not separable. That's why MCQs are critical.

    CPA - Since 2015
    CISA - Smashed 2012
    CIA - Passed 2015

    August 31, 2014 at 4:01 am #592137
    Anonymous
    Inactive

    Thanks M.O.D. and Mystical Guy. I have made a list of all such exceptions that I came across while doing MCQs and will memorize them.

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