Statement No. 154: reporting Accounting Changes.

• Position: FASB News - Financial Accounting Standards Board - Brief Article

FASB has issued Statement No. 154, Accounting Changes and Error Corrections, which applies to all voluntary changes in accounting principle, and changes the requirements for accounting for and reporting of a change in accounting principle.

Statement No. 154 replaces APB Opinion No. 20 and FASB Statement No. 3.

Statement 154 requires retrospective application to prior periods' financial statements of a voluntary change in accounting principle unless it is impracticable.

Statement 154 also requires that a change in method of depreciation, amortization or depletion for long-lived, nonfinancial assets be accounted for as a change in accounting...