Which of the following is not accounted for a change in accounting principle?
A) A change from LIFO to FIFO for inventory valuation
B) A change to a different method of depreciation for plant assets
C) A change from full-cost to successful efforts in the extractive industry
D) A change from the completed-contract to the percentage-of-completion method

Question

Quizplus · Accepted Answer

A change to a different method of depreciation for plant assets is considered a change in accounting estimate, not a change in accounting principle. Changes in accounting principles involve a switch from one generally accepted accounting principle to another, while changes in estimates are adjustments based on new information or new experiences.

Which of the Following Is Not Accounted for a Change