There are no prerequisites.

Course Description

One of the major issues companies and accountants face is how to reflect changes in accounting methods and error corrections in financial statements. This course provides a comprehensive overview of accounting requirements with respect to accounting changes and error corrections and the related reporting implications within an entity's financial statements. The scope of accounting changes includes a discussion of changes in accounting principles and changes in accounting estimates, as well as changes of a reporting entity. The course also provides an overview of the accounting requirements of correcting errors in previously issued financial statements as well as restatement considerations. A majority of the information included within this course is sourced from the requirements found within FASB ASC Topic No 250, Accounting Changes and Error Corrections.


Kelen Camehl, CPA, MBA

Kelen is a CPA with 15 years of progressive finance and accounting experience. Currently, he serves as a Senior Manager of Technical Accounting with HP, Inc. Prior to this role, he served in multiple accounting roles in the oil and gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and global internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors in Houston, TX.

Kelen has remained actively involved in CPA exam content development for the past eight years and has authored over a thousand multiple-choice questions for various sections of the exam, attending workshops with the AICPA across the country each year. He also serves as an editorial advisor for the AICPA’s Journal of Accountancy as well as both an author and technical reviewer for continuing professional education (CPE) courses published by the AICPA. He also authors CPE courses and serves as a technical reviewer and revision editor for Wolters Kluwer (CCH Group) and WebCE as well as contributing to CPE course development for SmartPros. He also authors CPE courses for PDH Academy.

Kelen received his BBA in Accounting from Texas A&M University—Corpus Christi, TX and an MBA from the University of Texas—San Antonio. He is a CPA licensed in the state of Texas.

Course Specifics

Oct 8, 2018
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

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


  • Cite the different types of accounting changes and how they affect an entity's financial statements
  • Identify differences between the requirements for the various types of accounting changes
  • Recall the steps involved in the required assessment for a correction of an error
  • Identify the differences between the iron curtain and rollover methods for quantifying a correction of an error
  • Recognize the different types of restatements required as a result of accounting changes


Table of Contents

Learning Objectives

Course Overview


Changes in Accounting Principle

Exhibit 1-1: ASC 250-10-45-1

Accounting for the Change in Accounting Principle

Exhibit 1-2: Impracticability Exceptions

Justifying a Change in Accounting Principle

Exhibit 1-3: ASC 330-10-30-14

Exhibit 1-4: SEC Guidance on Preferability on Accounting Principle Changes

Preferability Letter

Exhibit 1-5: SEC Speech on Goodwill Impairment Testing Date Change

Accounting Changes in Interim Periods

Change in Accounting Principle—Illustrative Example

Disclosures Required for Changes in Accounting Principles

Example Disclosure

Change in Accounting Estimate


Exhibit 1-6: Example Disclosure

Change in Reporting Entity


Accounting for Correction of Errors

Determine if an Error Exists

Exhibit 1-7: Small Intentional Misstatements

Iron Curtain Method

Exhibit 1-8: Iron Curtain Method (ASC 250-10-S99-2)

Internal Control Considerations

Corrections of Errors

Change in Accounting Principle

Change in Accounting Estimate

Accounting Standards Updates

ASU 2015-11

Exhibit 1-9: “Direct Effects of a Change in Accounting Principle” Definition

ASU 2015-01

Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation

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