There are no prerequisites.

Course Description

Occasionally, a company will find that it must alter its accounting to reflect a change in accounting principle or estimate - or it may locate an accounting error that must be corrected. These changes can have a substantial impact on the reported results of a business from period to period, which can make financial statements much less comparable over time. Accounting Changes and Error Corrections describes the situations in which it is necessary to make adjustments to prior period financial statements, and indicates situations when adjustments are only needed for the current period or in future periods. The differing treatments of changes in accounting principle, accounting estimate, and reporting entity are noted, as is the concept of materiality, which pertains to the correction of accounting errors.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Dec 8, 2017
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Recognize the situations in which an accounting principle should be changed.
  • Identify the situations in which retrospective application is required.
  • Note the different types of accounting errors.
  • Recognize the disadvantage of applying changes on a prospective basis.

Table of Contents

Learning Objectives


Changes in Accounting Principle

Disadvantages of Retrospective Application

Changes in Accounting Estimate

Disadvantages of Prospective Application

Changes in Reporting Entity

Correction of an Error in Previously Issued Financial Statements

Corrections Related to Prior Interim Periods

The Materiality of an Error

The Materiality Principle

The SEC’s View of Materiality

Accounting Changes and Error Corrections Disclosures

Change in Accounting Principle

Change in Accounting Estimate

Change in Reporting Entity

Error Corrections

Prior Period Adjustments

Historical Summaries


Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation



Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

Back to top