Comments on: Understand The Difference Between Change in Accounting Estimate Versus Change in Accounting Policies http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/ Free Online Accountancy Learning For Colleges & Universities Mon, 08 Sep 2008 11:40:14 +0000 http://wordpress.org/?v=2.6.1 By: Paul http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/#comment-9589 Paul Tue, 04 Sep 2007 13:47:36 +0000 http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/#comment-9589 <p><p>How is a change in the capitalization threshold treated? Is this a change in an accounting estimate or a change in accounting principles?</p></p> Hi Paul, <p>More towards accounting policy namely say earlier, the company capitalized purchased items above $200 as fixed assets but now decided to change it to say $500. This has nothing to do with accounting estimates/principles as these are "errors" that needs to be rectified in the financial statements normally by the auditors who felt that the matching concept has been violated. Wmst Rgds</p> slang <p>How is a change in the capitalization threshold treated? Is this a change in an accounting estimate or a change in accounting principles?</p>

Hi Paul,

More towards accounting policy namely say earlier, the company capitalized purchased items above $200 as fixed assets but now decided to change it to say $500. This has nothing to do with accounting estimates/principles as these are “errors” that needs to be rectified in the financial statements normally by the auditors who felt that the matching concept has been violated.
Wmst Rgds

slang

]]> By: Understand Accounting Fundamental Errors | Basic College Accounting.com http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/#comment-348 Understand Accounting Fundamental Errors | Basic College Accounting.com Tue, 14 Nov 2006 13:59:09 +0000 http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/#comment-348 [...] Earlier we have discussed in details changes in accounting estimates and changes in accounting policies. [...] [...] Earlier we have discussed in details changes in accounting estimates and changes in accounting policies. [...]

]]> By: Changes In Accounting Policies | Basic College Accounting.com http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/#comment-344 Changes In Accounting Policies | Basic College Accounting.com Tue, 14 Nov 2006 13:48:56 +0000 http://basiccollegeaccounting.com/understand-the-difference-between-change-in-accounting-estimate-versus-change-in-accounting-policies/#comment-344 [...] In the earlier articles, we have discussed Changes in accounting estimates and fundamental errors. [...] [...] In the earlier articles, we have discussed Changes in accounting estimates and fundamental errors. [...]

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