Jeopardy

Cumulative Effect Approach

100

This is another name for the cumulative effect approach

modified retrospective approach

200

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

300

The new revenue recognition standard allows for use of the cumulative effect approach so long as the companies...

Provide certain additional disclosures

GAAP/SEC Requirements

100

These SEC Disclosures Require a Company to Elaborate on Accounting Standards That Will Eventually Be Adopted

SAB 74 Disclosures

200

This Group Develops and Mandates SAB 74 Disclosures

Staff Accounting Bulletin

300

SEC Disclosures Ensure That Analysts Will Be Able to Accurately ______ Future Financial Data

Forecast

Retrospective Approach

100

What Financial Statement Framework Enhancing Characteristic Does the Retrospective Approach Provide?

Comparability

200

What Company Used the Retrospective Approach to Show Changes in Topic 606 Revenue Recognition?

Microsoft

300

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

Types of Accounting Changes

100

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

200

This type of accounting change would result in a change in the estimated percentage of uncollectible accounts

Change in Accounting Estimate

300

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