Which of the following is an example of a change in accounting principle?
A) A change in inventory costing methods.
B) A change in the estimated useful life of a depreciable asset.
C) A change in the actuarial life expectancies of employees under a pension plan.
D) Consolidating a new subsidiary.

Question

Quizplus · Accepted Answer

A change in inventory costing methods (e.g., from FIFO to LIFO) is considered a change in accounting principle. Changes in estimates (B and C) and changes in the reporting entity (D) are not classified as changes in accounting principles.

Which of the Following Is an Example of a Change