Permissible under generally accepted accounting principles

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Reference no: EM131556660

In 1981, USSC extended the useful lives of several of its fixed asset and adopted salvage values for many of these same assets for the first time. Are these changes permissible under generally accepted accounting principles? Assuming these changes had a material effect on USSC’s financial condition and results of operations, how should the changes have been disclosed in the company’s financial statements? How should these changes have affected Ernst & Whinney’s 1981 audit opinion? (Assume that current audit reposting standards were in effect at the time.)

Reference no: EM131556660

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