ACC 305 Intermediate Accounting III

Use the Internet to research a company that had a change in accounting
principles within the past five (5) years. Be prepared to discuss
“Changes in Accounting Principles and Changes in Accounting Estimates” Please respond to the following:
From the e-Activity, discuss the accounting principles that the
identified company changed, and explain the major reasons why the
company changed accounting principles. Give your opinion on whether you
believe the change in accounting principles was to benefit the
corporation or investors and creditors. Provide a rationale for your
response.Imagine you are the senior accountant at your organization, and
management is not sure of the difference between a change in accounting
estimate and a change in accounting principle. Briefly discuss the
difference between a change in accounting estimate and a change in
accounting principle, and outline the impact the changes will have on
the company s financial statements. Give your opinion on why a company
should avoid reporting changes in accounting principles and changes in
accounting estimates. Provide a rationale for your response.

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