A) If a public company desires to change from the sum-of-year's digits depreciation method to the straight-line method for its fixed assets, what t. type of accounting change will this be? How would it be treated? Discuss the permissibility of this change.

B) If a public company obtained additional information about the service lives of some of its fixed assets that showed that the service lives previously used should be shortened, what type of accounting change would this be? Include in your discussion how the change should he reported in the income statement of the year of the change and what disclosures should be made in the financial statements or notes.

C) Changing specific subsidiaries comprising the group of companies for which consolidated financial statements are presented is an example of what type of accounting change, and what effect does it have on the consolidated income statements?

Case

A) Define, discuss, and illustrate each of the following in such a way that one can be distinguished from the other:

a)An accounting change

b) A correction of an error in previously issued financial statements

B) Discuss the justification for a change in accounting principle.

C) Discuss the reporting of accounting changes that was required by APB Opinion No. 20.

D) Discuss how accounting changes are to be reported under the provisions of SFAS No. 154.