FAR-Error Corrections

Question 1

What is the treatment when it is impossible to determine whether change in accounting principle or estimate has occurred?

Answer 1

The change should be considered a change in estimate.

Question 2

Which disclosures should prospective financial statements include?

Answer 2

Summary of significant accounting policies

Summary of significant assumptions

Question 3

For which type of material related-party transactions does FASB ASC Topic 850, Related Party Disclosures, require disclosure?

Answer 3

All those other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business.