F1 - 1.10 Accounting Changes & Error Correction

Question 1

How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?

e.g., change in depreciation, amortization and depletion method

Answer 1

Change in accounting principle which is inseparable from the change in accounting estimate should be…
- accounted for as a change in accounting estimate
- as a component of income from continuing operations
- in the period of change and prospectively

e.g., change in depreciation, amortization and depletion method