First off let me state that \u201cmay\u201d in the title means that there are always those rare cases and exceptions to almost everything when it comes to accounting. Since we\u2019re not about those rare situations, but more wanting to state the basics, we\u2019re going to skip this. It\u2019s just to let you know that there are exceptions as always.\u00a0<\/p>\n
Now, if you\u2019ve decided to change accounting presentation and \/ or classification in your reports, it means your future figures are about to change. It is either how you\u2019re going to group them from now on, on which statements your presenting them etc. It\u2019s the format that\u2019s changing.<\/p>\n
Why would you change your previous year figures? Well, simply because of something we call \u201cconsistency\u201d. You do want your figures still to be comparable and as such, when you\u2019re changing accounting presentation and \/ or classification, you\u2019ve got to go back in time and make those changes into the past as well. What it in practice means is that you change last year\u2019s figures and for all the other years the effect if any is carried into \u201cretained earnings\u201d. If it\u2019s just a presentational change, it\u2019s unlikely there\u2019s any such effect, but just to give you a hint.<\/p>\n
Whenever you\u2019ve made your careful considerations and decided to change accounting presentations, always consider and apply those changes retrospective.<\/p>\n","protected":false},"excerpt":{"rendered":"
First off let me state that \u201cmay\u201d in the title means that there are always those rare cases and exceptions to almost everything when it comes to accounting. Since we\u2019re not about those rare situations, but more wanting to state the basics, we\u2019re going to skip this. It\u2019s just to let you know that there […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,74],"tags":[],"class_list":["post-3771","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-7-accounting-in-itself"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3771"}],"version-history":[{"count":2,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3771\/revisions"}],"predecessor-version":[{"id":3773,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3771\/revisions\/3773"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}