preferability

Presentation1

1. 250-10Overall250 Accounting Changes and Error Corrections

   ASC 250-10 governs how entities report the three types of accounting changes (change in accounting principle, change in accounting estimate, change in reporting entity) and the correction of errors in previously issued financial statements. The default rule is retrospective application for changes in principle and changes in reporting entity, prospective treatment (current and future periods) for changes in estimate, and restatement for error corrections. A change in principle is permitted only if required by a Codification update or justified as preferable, and retrospective application may be limited only where it is "impracticable" under the narrow conditions in 250-10-45-9.