Which of the following is NOT considered to be a change in accounting policy?
A) changing from weighted average to FIFO for valuing inventories
B) initial adoption of a new accounting standard
C) reclassifying items on the financial statements of prior periods to make the statements more comparable
D) changing from the cost basis to the fair value model for measuring investments

Question

Quizplus · Accepted Answer

Reclassifying items on the financial statements of prior periods to make the statements more comparable is considered a correction of an error, not a change in accounting policy. A change in accounting policy involves a deliberate shift in the method of accounting for a particular item or transaction.

Which of the Following Is NOT Considered to Be a Change