Difference in change in accounting estimate and principle

Assignment Help Financial Accounting

Reference no: EM131215697

Imagine you are the senior accountant at your organization, and management is not sure of the difference between a change in accounting estimate and a change in accounting principle. Briefly discuss the difference between a change in accounting estimate and a change in accounting principle, and outline the impact the changes will have on the company’s financial statements. Give your opinion on why a company should avoid reporting changes in accounting principles and changes in accounting estimates. Provide a rationale for your response.

Reference no: EM131215697

Questions Cloud

Management is unsure of the impact that capital lease : Imagine you are the senior accountant at an organization and management is considering leasing some equipment; however, management is unsure of the impact that a capital lease would have on the company. Briefly describe the manner in which a capital ..

Operating lease may be more beneficial than operating lease : From the previous bulleted discussion, assume that management now has a clear understanding of capital leases, but has been informed by colleagues that an operating lease may be more beneficial than an operating lease, since the useful life for the e..

Discuss the accounting principles : From the e-Activity, discuss the accounting principles that the identified company changed, and explain the major reasons why the company changed accounting principles. Give your opinion on whether you believe the change in accounting principles was ..

Difference in change in accounting estimate and principle : Imagine you are the senior accountant at your organization, and management is not sure of the difference between a change in accounting estimate and a change in accounting principle. Briefly discuss the difference between a change in accounting estim..

Partial amortization table at the effective interest rate : On January 1, a company purchased 5%, 15-year corporate bonds for $59,249,660 as an investment. The bonds have a face amount of $80 million and are priced to yield 8%. Interest is paid semiannually. Prepare a partial amortization table at the effecti..

Prepare the journal entry to record interest revenue : The Bradford Company issued 10% bonds, dated January 1, with a face amount of $75 million on January 1, 2013 to Saxton-Bose Corporation. The bonds mature on December 31, 2021 (9 years). For bonds of similar risk and maturity, the market yield is 12%...

Journal entry to record the purchase of the bonds : The Bradford Company issued 10% bonds, dated January 1, with a face amount of $75 million on January 1, 2013 to Saxton-Bose Corporation. The bonds mature on December 31, 2021 (9 years). For bonds of similar risk and maturity, the market yield is 12%...

Lease agreement that qualifies as capital lease calls : A lease agreement that qualifies as a capital lease calls for annual lease payments of $25,000 over a six-year lease term, with the first payment at January 1, the lease’s inception. The interest rate is 5% (FV of $1, PV of $1, FVA of $1, PVA of $1, ..

User Account

All Pages