[Anonymous]

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 retrospectively. Can someone clear this up for me? Thanks.

[CPA soon]

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.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[CPA soon]

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.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[matt]

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.

FAR: 89
BEC: 88
REG: 81
AUD: 76

CPAexcel, NINJA 10 point combo, & NINJA MCQ

"Pain is temporary, it may last for a minute, or an hour, or a day, or even a year...but eventually it will subside and something else will take its place. If I quit however, it will last forever."

[matt]

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.

FAR: 89
BEC: 88
REG: 81
AUD: 76

CPAexcel, NINJA 10 point combo, & NINJA MCQ

"Pain is temporary, it may last for a minute, or an hour, or a day, or even a year...but eventually it will subside and something else will take its place. If I quit however, it will last forever."

[UHC2005]

Matt, that's correct per the explanation that I've seen in my MCQs.

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[UHC2005]

Matt, that's correct per the explanation that I've seen in my MCQs.

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[super_cpa]

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 approach, you can choose to use the prospective approach.

- "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

[super_cpa]

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 approach, you can choose to use the prospective approach.

- "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

[Author]

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