Identification and Effects of Changes and Errors
The following are independent events:
Required:
Indicate what type of accounting change or error, if any, is represented by each of the preceding items and the method of accounting
retrospective adjustment, prospective, or prior period adjustment for the item in the financial statements of the current year. If any
statement has no accounting change, select "This is not an accounting change".
a Changed from the LIFO to the FIFO inventory cost flow assumption.
b Reduced remaining service life of machinery from to years.
c Changed from an accelerated method to the straightline method of depreciating assets.
d Wrotedown inventories because of obsolescence.
e Received damages won in a court suit instigated years ago.
f Discovered that costs were recorded as an expense in a previous period but should have been recorded as an item of property, plant,
and equipment.
g Wrote down property, plant, and equipment because of closure of inefficient plants.
h Changed from the successfulefforts method to the fullcost accounting method for oil exploration costs.
