Financial Impact Simulator

See how different accounting changes and error corrections affect financial statements. Select a scenario to begin.

1. Select a Scenario

Type of Change

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Application Method

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2. See the Financial Statement Impact

Prior Period Retained Earnings

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Current Period Income Statement

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Future Periods Income Statement

Select a scenario to see the impact explanation.

Reference: Definitions & Rules

Change in Estimate

Prospective

An adjustment to an amount due to new information. Handled in the current and future periods. No restatement of past financials.

Change in Principle

Retrospective

A switch from one GAAP method to another. Prior periods are restated, and beginning Retained Earnings is adjusted.

Change in Entity

Retrospective

The composition of the reporting entity changes. All prior periods presented are restated to reflect the new entity.

Error Correction

Prior Period Adjustment

Fixing a mistake from a prior period. Restate the prior period statements and adjust beginning Retained Earnings.

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