Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material effect on the financial statements for the current year of your business enterprise.
1. A change from including the employer share of FICA taxes with payroll tax expenses to including it with "Retirement benefits" on the income statement.
2. Correction of a mathematical error in inventory pricing made in a prior period.
3. A change from presentation of statements of individual companies to presentation of consolidated statements.
4. A change in the method of accounting for leases for tax purposes to conform with the financial accounting method. As a result, both deferred and current taxes payable changed substantially.
5. A change from the FIFO method of inventory pricing to the LIFO method of inventory pricing.