{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/250/10/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"250","topic_title":"Accounting Changes and Error Corrections","subtopic":"250-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"250-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_77387A77-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides guidance on the accounting for and reporting of accounting changes and error corrections. </span></span>An <a href=\"/glossary/a/#accounting-change\" class=\"term\" title=\"A change in an accounting principle, an accounting estimate, or the reporting entity. The correction of an error in previously issued financial statements is not an accounting change.\"><span>accounting change</span></a> can be a change in an accounting principle, an accounting estimate, or the reporting entity. Guidance for each of these types of changes is presented in separate headings within each Section. Guidance for error corrections is also presented under a separate heading within each Section.</div></div>","snippet":"This Subtopic provides guidance on the accounting for and reporting of accounting changes and error corrections. An accounting change can be a change in an accounting principle, an accounting estimate, or the reporting e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62fdd7b33916383324a95e1e5581178b6b03c5d346e01cf1c2d8e19e83500794","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:370868319aa12665c24b53ae547cd23f151be9291e148487ceb5e2c293edf639","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}},{"block":null,"heading":"Accounting Changes","paragraphs":[{"citation":"250-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_77387B8F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic establishes, unless impracticable, <a href=\"/glossary/r/#retrospective-application\" class=\"term\" title=\"The application of a different accounting principle to one or more previously issued financial statements, or to the statement of financial position at the beginning of the current period, as if that principle had always been used, or a change to financial statements of prior accounting periods to present the financial statements of a new reporting entity as if it had existed in those prior years.\"><span>retrospective application</span></a> as the required method for reporting a <a href=\"/glossary/c/#change-in-accounting-principle\" class=\"term\" title=\"A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.\"><span>change in accounting principle</span></a> in the absence of explicit transition requirements specific to a newly adopted accounting principle. </span></span></div></div>","snippet":"This Subtopic establishes, unless impracticable, retrospective application as the required method for reporting a change in accounting principle in the absence of explicit transition requirements specific to a newly adop…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ebf76cd77dbe45cdfb7aaf6962dd2d9efa2bd693bc896a4fb9853cecb5a611ba","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}},{"citation":"250-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_77387C70-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides guidance for determining whether retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable. </span></span></div></div>","snippet":"This Subtopic provides guidance for determining whether retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a88154a65daa02eb6bc5766eee595b3f7d21215f4a6119707c08e1801509d1ab","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:261fe0d753577a9332540d49e2a773c2565e2160ef31bd05ea41521cc8846c6b","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}},{"block":null,"heading":"Error Corrections","paragraphs":[{"citation":"250-10-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_77387D49-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The correction of an <a href=\"/glossary/e/#error-in-previously-issued-financial-statements\" class=\"term\" title=\"An error in recognition, measurement, presentation, or disclosure in financial statements resulting from mathematical mistakes, mistakes in the application of generally accepted accounting principles (GAAP), or oversight or misuse of facts that existed at the time the financial statements were prepared. A change from an accounting principle that is not generally accepted to one that is generally accepted is a correction of an error.\"><span>error in previously issued financial statements</span></a> is not an accounting change. </span></span><span class=\"sfragment\" id=\"sfr_77387E1C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, the reporting of an error correction involves adjustments to previously issued financial statements similar to those generally applicable to reporting an accounting change retrospectively. </span></span><span class=\"sfragment\" id=\"sfr_77387EE1-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Therefore, the reporting of a correction of an error by restating previously issued financial statements is also addressed by this Subtopic. </span></span></div></div>","snippet":"The correction of an error in previously issued financial statements is not an accounting change. However, the reporting of an error correction involves adjustments to previously issued financial statements similar to th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc1a37d70e52b183738a5d4a83b5bfea67cba128539cabe7ea80d2e2fe4075dd","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}},{"citation":"250-10-05-5","para":"05-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_77387FA6-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic also: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_77388154-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Specifies the method of treating error corrections in comparative statements for two or more periods </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_7738822B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Specifies the disclosures required when previously issued statements of income are restated </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_773882EC-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Recommends methods of presentation of historical, statistical-type financial summaries that are affected by error corrections. </span></span></div></li></ol></div></div>","snippet":"This Subtopic also:\n(a) Specifies the method of treating error corrections in comparative statements for two or more periods\n(b) Specifies the disclosures required when previously issued statements of income are restated…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9593a3efad46c99441564771df821ebd5bdf5aed9bd0125cc1dad0fcfe7307ee","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46975fa5fa0cfb4932e482ccfeea036f57917a43daf9bad1b2ef54afdf5d26fa","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f45fc3a9803a4120bc982aaa927214dc3ecb01529c7d20b330dbab0680f9e98a","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f45fc3a9803a4120bc982aaa927214dc3ecb01529c7d20b330dbab0680f9e98a","downloaded_from":"2026-09-09T23:17:01.274Z","last_downloaded_at":"2026-09-09T23:17:01.274Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483448","source_sha256":"146bcc726456d565354bc345e275b4171aa623d51c230ac12ca6283178a8c8be"}}