# ASC 250-10-05: Accounting Changes and Error Corrections — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/250/10/#05-overview-and-background) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:17:01.274Z to 2026-09-09T23:17:01.274Z Record version: sha256:f45fc3a9803a4120bc982aaa927214dc3ecb01529c7d20b330dbab0680f9e98a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 250-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/250/10/#05-overview-and-background) SEC content: no ##### [250-10-05-1](https://asc.understandingaccounting.org/asc/250/10/#250-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:01.274Z to 2026-09-09T23:17:01.274Z Record version: sha256:62fdd7b33916383324a95e1e5581178b6b03c5d346e01cf1c2d8e19e83500794 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the accounting for and reporting of accounting changes and error corrections. An [accounting change](https://asc.understandingaccounting.org/glossary/a/#accounting-change "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.") 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. #### Accounting Changes ##### [250-10-05-2](https://asc.understandingaccounting.org/asc/250/10/#250-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:01.274Z to 2026-09-09T23:17:01.274Z Record version: sha256:ebf76cd77dbe45cdfb7aaf6962dd2d9efa2bd693bc896a4fb9853cecb5a611ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic establishes, unless impracticable, [retrospective application](https://asc.understandingaccounting.org/glossary/r/#retrospective-application "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.") as the required method for reporting a [change in accounting principle](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "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.") in the absence of explicit transition requirements specific to a newly adopted accounting principle. ##### [250-10-05-3](https://asc.understandingaccounting.org/asc/250/10/#250-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:01.274Z to 2026-09-09T23:17:01.274Z Record version: sha256:a88154a65daa02eb6bc5766eee595b3f7d21215f4a6119707c08e1801509d1ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Error Corrections ##### [250-10-05-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:01.274Z to 2026-09-09T23:17:01.274Z Record version: sha256:cc1a37d70e52b183738a5d4a83b5bfea67cba128539cabe7ea80d2e2fe4075dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The correction of an [error in previously issued financial statements](https://asc.understandingaccounting.org/glossary/e/#error-in-previously-issued-financial-statements "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.") is not an accounting change. 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. Therefore, the reporting of a correction of an error by restating previously issued financial statements is also addressed by this Subtopic. ##### [250-10-05-5](https://asc.understandingaccounting.org/asc/250/10/#250-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:01.274Z to 2026-09-09T23:17:01.274Z Record version: sha256:9593a3efad46c99441564771df821ebd5bdf5aed9bd0125cc1dad0fcfe7307ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic also: 1. a Specifies the method of treating error corrections in comparative statements for two or more periods 2. b Specifies the disclosures required when previously issued statements of income are restated 3. c Recommends methods of presentation of historical, statistical-type financial summaries that are affected by error corrections.