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stone company changed its method of pricing inventories from fifo to lifo what type of accounting change does this represent

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varshamittal029

A change in accounting standards for which the previously reported financial statements for periods used for comparison should be supplied.

  • The use of a new depreciation technique or transitioning from the LIFO (Last In, First Out) to FIFO (First In, First Out) inventory valuation method are examples of changes in accounting principles. Accounting principle adjustments are always made within the current or next quarter. For changes in accounting estimates, previous statements should be restated.
  • The corporation alternates between the various inventory value techniques in the shown instance. Because the policy is not applied consistently and is altered every year, this is a breach of the consistency principle.
  • There are two accounting techniques known as FIFO and LIFO that are used to manage inventory and financial concerns regarding the amount of money a corporation must have locked up in inventory of finished items, raw materials, parts, components, or feedstocks.

Thus this is the type of accounting change.

Refer here to learn more about accounting change: https://brainly.com/question/29614549

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