TAILIEUCHUNG - Accounting Changes and Error Corrections

Life cycle analysis, examining all stages in using a re- source, is central to the full cost accounting needed to guide public policy and private investment. A previous study examined the life cycle stages of oil, but without systematic quantification. 24 This pa- per is intended to advance understanding of the measurable, quantifiable, and qualitative costs of coal. In order to rigorously examine these different damage endpoints, we examined the many stages in the life cycle of coal, using a framework of en- vironmental externalities, or “hidden costs.” Exter- nalities occur when the activity of one agent affects the well-being of another agent outside of any type of market mechanism—these are often not taken into account in. | Accounting Changes and Error Corrections ACCOUNTING CHANGES Types of Accounting Changes 1. Change in accounting principle-Change from one generally accepted accounting principle to another. 2. Change in accounting estimate-Revision of an estimate because of new information or new experience. 3. Change in reporting entity-Change from reporting as one type of entity to another type of entity. 4. Correction of an error-Correction of an error caused by a transaction being recorded incorrectly or not at all. CHANGE IN ACCOUNTING PRINCIPLE Changing from one acceptable accounting principle to another acceptable accounting principle is accounted for as a change in accounting principle. This does not include the adoption of a new accounting principle because the entity has entered into transactions for the first time that require specific accounting treatment. It also does not include the change from an inappropriate accounting principle to an acceptable accounting principle. The later would be classified as the correction of an error. The types of changes that might be included in a change in accounting principle are S Adoption of a new FASB accounting standard S Change in the method of inventory costing S Change to or from the cost method to the equity method S Change to or from the completed contract to percentage-of-completion method CHANGE IN ACCOUNTING ESTIMATE At the end of each accounting period there are a number of estimates made in order to prepare the financial statements. These estimates are based on the facts and circumstances that exist at the time. These facts and circumstances will change from one accounting period to the next. It is not practical to restate the financial statements every time there is new information that makes the prior estimates incorrect. Therefore on an ongoing basis management applies its best judgment and modifies such estimates as the facts and circumstances change in each subsequent accounting period. A change in accounting .

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• largely contributed
• reduction of prevalence
• highly needed
• Description
• notification systems
• notification systems
• prevalence of pulmonary
• Subjects and Methods
• cross sectional