Authority and currency
About this authority
- Publisher
- Financial Accounting Foundation
- Standing
- Primary authority
- Version
- Statement 154 historical text
- Relevant parts
- Summary; paragraphs 2 through 26; Appendix A illustrations
- Currency
- superseded · checked Aug 8, 2026
Statement 154 replaced the prior cumulative-effect-in-current-income convention for most voluntary principle changes with retrospective application unless that application is impracticable. It also preserved prospective treatment of estimate changes, retrospective presentation of reporting-entity changes, and restatement for error correction. The Statement distinguishes direct effects from indirect effects and makes the evidence available at the historical date central to the impracticability and estimate-versus-error analysis.
The course uses the Statement to explain why the model has its present shape. It does not cite this superseded document as current GAAP or assume that a new standard lacks its own transition instructions.