communicate appropriately in the auditor's report when the comparability of financial statements between periods has been materially affected by a change in accounting principle
or by adjustments to correct a material misstatement in previously issued financial statements.
154, Accounting Changes and Error Corrections, which applies to all voluntary changes in accounting principle
, and changes the requirements for accounting for and reporting of a change in accounting principle
3, Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting principle
The Company also reported that it will be making non-cash tax adjustments and restating its previously reported net income for the first three quarters of fiscal year 2006 due to the applicability of an accounting principle
covering use of pre-emergence bankruptcy net operating loss ("NOL") carry forwards.
Sutton called on auditors to continue to earn public confidence by focusing on the appropriateness of accounting principles
and the clarity of disclosures rather than reporting on whether an accounting principle
is within the range of acceptable practice.
The effects of adopting the guide may be reported in a manner similar to the cumulative effect of a change in accounting principle
as specified by Accounting Principles
Board Opinion no.
AEE reported full-year 2005 net income before the cumulative effect of a change in accounting principle
of $628m or $3.
If the auditor has difficulty deciding whether an accounting principle
is appropriate, the auditor will tell the company.
This accounting principle
permits companies to exclude unremitted earnings from foreign operations from its calculation of U.
Foremost among the similarities are that the determination of the preferability of a change from one generally accepted accounting principle
to another and the assessment of the quality of financial reporting are both value judgments based on particular circumstances, but are not based on a belief that one acceptable method is always preferable to another.
The hierarchies of generally accepted accounting principles
(GAAP hierarchies) of nongovernmental, state and local, and federal reporting entities have resided in SAS No.
Indeed, because the asset recognition model is fundamentally flawed, we believe the proposed Interpretation would neither represent an improvement over current accounting principles
nor produce greater consistency and comparability of financial statements.