Question

Accounting changes can have direct and indirect effects on financial statement presentation. Discuss how accounting changes can alter a presentation.

Answer 1

The change in the presentation of an accounting change has a direct effect on the recognized change in property or title that is affecting the change in the article.

An indirect consequence of a change in accounting is the ability to make changes in the form of cash in the present or future of a business, such as changes taking place through the conversion of accounting. This means that we are implementing changes according to the previous financial results.

The change of the article needs to be predetermined for the change of the article in the past. The financial statements in the article may include the effect of the change in presentation time during the presentation of assets and liabilities at the time of submission. Include the start-up asset balance that is presenting the financial statements. That way, include all the financial transactions presented in the article again.

These prior changes are only a direct result of the change in the article. You do not need to match financial results by default to have an indirect impact. Changes in the depreciation method need to be made to change the presentation of accounts. It is a change that the daily changes in the budget are recorded in the financial statements.

An accounting change is a change in accounting principle. The change in when and how the revenue is made. A change from a generally accepted article to another category is reflected in this category. An accounting change is a change in the overall reporting situation. This is also a kind of foregoing change that requires re-accounting.