Cumulative Effect Approach
This is another name for the cumulative effect approach
modified retrospective approach
These SEC Disclosures Require a Company to Elaborate on Accounting Standards That Will Eventually Be Adopted
SAB 74 Disclosures
What Financial Statement Framework Enhancing Characteristic Does the Retrospective Approach Provide?
Comparability
This type of accounting principle change is initiated by a firm, rather than required by a standard-setting body such as the FASB
Voluntary Change
These are two circumstances in which it is acceptable for a company to use the cumulative effect approach
(1) the retrospective approach is impracticable
(2) the standard allows it
This Group Develops and Mandates SAB 74 Disclosures
Staff Accounting Bulletin
What Company Used the Retrospective Approach to Show Changes in Topic 606 Revenue Recognition?
Microsoft
This type of accounting change would result in a change in the estimated percentage of uncollectible accounts
The new revenue recognition standard allows for use of the cumulative effect approach so long as the companies...
Provide certain additional disclosures
SEC Disclosures Ensure That Analysts Will Be Able to Accurately ______ Future Financial Data
Forecast
How are the Prior Year Financial Statements Shown After Using the Retrospective Approach to Change the Principle?
As if the new principle has been used since inception
Reporting consolidated statements in place of financial statements for individual entities would be an example of this type of accounting change
Change in Entity Reporting