Stone Company changed its method of pricing inventories from FIFO to LIFO. What

Question

Stone Company changed its method of pricing inventories from FIFO to LIFO. What type of accounting change does this represent?

A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be presented as previously reported. A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be restated. A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be restated. A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.

Explanation / Answer

A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be presented as previously reported. Option 1 is correct

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