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1. What is a change in reporting entity is? Please provide a real world example. 2. Please explain the difference between a change in accounting principle and a change in accounting estimate. Provide an example of each situation.` 3. What would a real wor

1. What is a change in reporting entity is? Please provide a real world example.

2. Please explain the difference between a change in accounting principle and a change in accounting estimate. Provide an example of each situation.`

3. What would a real world example of a change in accounting principle? What was the change and what were the facts and circumstances?

4. If a material accounting error from a prior year is detected, what type of accounting treatment is required to address these errors?

5. What would be Counterbalancing errors on a balance sheet or income statement.

6. What would be Non-counter balancing errors on a balance sheet or income statement.

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University of Nairobi