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As of December 15, 2017
accounting principle."
6 "Change in reporting entity" is a change that results in financial statements that, in effect, are those of a
different reporting entity. See SFAS No. 154, paragraph 2f.
7 Newly issued accounting pronouncements usually set forth the method of accounting for the effects of a
change in accounting principle and the related disclosures. SFAS No. 154 sets forth the method of accounting
for the change and the related disclosures when there are no specific requirements in the new accounting
pronouncement.
8 The issuance of an accounting pronouncement that requires use of a new accounting principle, interprets
an existing principle, expresses a preference for an accounting principle, or rejects a specific principle is
sufficient justification for a change in accounting principle, as long as the change in accounting principle is made
in accordance with the hierarchy of generally accepted accounting principles. See SFAS No. 154, paragraph 14.
8A AS 3105, Departures from Unqualified Opinions and Other Reporting Circumstances, describes reporting
requirements related to a qualified or an adverse opinion.
[9] [Footnote not used.]
10 AS 3105.52–53 apply when comparative financial statements are presented and the opinion on the prior-
period financial statements differs from the opinion previously expressed.
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