Change in Accounting Principle
      1. Define a change in accounting principle.
      2. How are most changes in accounting principle accounted for and reported?
      3. What is the "Cumulative effect of a change in accounting principle?"
      4. How was the cumulative effect reported in the financial statements under APB Opinion No. 20? And how did was the reporting changed in FASB Statement No. 154?
      5. What argument(s) can be made for retroactively reporting changes in accounting principles?
      6. Why did the APB, in Opinion No. 20, rule out the retroactive restatement approach for most changes in accounting principles?
      7. Explain in detail how a change in accounting principle would be reported in the financial statements.
      8. If a change in principle occurs in year 3, what method of accounting (old or new) should be used in preparing year 3 financial statements?
      9. What were "pro-forma presentations?" Where were they reported?  Are pro-forma presentations for changes in accounting necessary under FASB Statement No. 154?
      10. What disclosures are necessary when a change in accounting principle occurs?
      11. What changes in accounting principles should be reported retroactively?

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