| Posted: 18 Mar 2009 at 09:00 | IP Logged
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I was going through the updates in FAR this year on Becker's website.
It tells about the changes involving the cost and equity methods of accounting for investments...
Per GAAP, changes involving the cost and equity methods of accounting for investments are not considered to be changes in accounting principle.
A change from the cost method to the equity method does require restatement;
however, a change from the equity method to the cost method does not require restatement and is accounted for prospectively.
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Divya - CO State
Passed using Becker Review :
FAR - 04/11/09 - 94
BEC - 05/30/09 - 86
REG - 08/29/09 - 95
AUD - 11/21/09 - 92
Ethics - 2011
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Topic: Switching from the cost to equity method
Topic Closed)
