Distinguishing between a change in accounting principle and a change in estimate can be difficult, but the distinction is critical to applying the correct guidance. GASB research indicated preparer classification challenges among the various adjustment categories and diversity in the related note disclosures. To address these issues, GASB recently released Statement 100, Accounting Changes and Error Corrections. This article provides details on the guidance.
GASB Updates Rules on Accounting Changes & Error Corrections
GASB • July 22, 2022
GASB Statement 100 addresses preparer classification challenges among the various adjustment categories and diversity in the related note disclosures.