FASB Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections

Topic 250 is the controlling US GAAP research starting point for accounting changes and error corrections. The route depends on what changed and why: principle changes generally follow the applicable pronouncement's transition instructions or the Topic 250 retrospective model; estimate changes affect the period of change and future periods as applicable; reporting-entity changes are presented retrospectively; and material errors in previously issued statements are corrected by restatement.

Every distinction is evidence-dependent. A convenient new label cannot convert an error into an estimate change, and a later outcome different from an earlier estimate does not by itself prove that the earlier estimate was erroneous. The file preserves what information existed, when it was reasonably available, how it was used, and which transition, tax, comparative-statement, per-share, and disclosure consequences follow from the supported classification.