digi2003 on "Change from FIFO to LIFO is a change in principle or estimate?"
I could have sworn I read or in the MCQ that going from FIFO to LIFO is treated as a change in estimate, handled prospectively. However, in my Becker SIMS, it says as a change in principle, handled...
View ArticleCPA soon on "Change from FIFO to LIFO is a change in principle or estimate?"
Change in estimate since it's impractical to go back and recalculate multiple inventory layers. Depreciation and inventory method change are exceptions of principles being handled prospectively.
View Articlematt85 on "Change from FIFO to LIFO is a change in principle or estimate?"
It's a change of principal. If you can't separate a change in principal from a change in estimate it's treated as a change of estimate.Please correct me if I'm wrong.
View ArticleUHC2005 on "Change from FIFO to LIFO is a change in principle or estimate?"
Matt, that's correct per the explanation that I've seen in my MCQs.
View Articlesuper_cpa on "Change from FIFO to LIFO is a change in principle or estimate?"
That's right Matt. It would be considered a change in accounting principle as you are changing from one generally accepted principle to another. But if it is impractical to use the retrospective...
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