IDEAS home Printed from
   My bibliography  Save this article

Some Aspects Regarding Changes in Accounting Policies, Estimates and Correction of Errors


  • Diana BALACIU
  • Victoria BOGDAN

    (University of Oradea)


Changes in accounting policies may be precipitated by a change in the company’s economic environment. Accounting changes may also result from changes in ownership that cause a shift in the financial reporting objectives, such as from private to public ownership, or vice versa. At each statement date, whether annual or quarterly, management must re-evaluate the many estimates that are required when financial statements are prepared. Changes in estimates may have a significant impact on reported results. Finally, there are necessary accounting changes that arise when a company discovers that it has made an accounting error in previous accounting periods. Obviously, errors need to be corrected in order to present fairly the financial condition and results of operations of the prior periods, even if the current period is not affected. Consistency and comparability must be achieved by correcting any errors that have a material effect on previously reported results. All types of accounting changes affect reported results, but not necessarily in the same way. The objective of our study is to describe the different types of accounting changes, the ways in which they affect reported results, and the accounting approach used to adjust for the changes.

Suggested Citation

  • Diana BALACIU & Victoria BOGDAN, 2008. "Some Aspects Regarding Changes in Accounting Policies, Estimates and Correction of Errors," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(36), pages 376-382, May.
  • Handle: RePEc:aio:aucsse:v:1:y:2008:i:11:p:376-382

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    accounting policies; changes in accounting estimates; errors of the prior financial year;

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:1:y:2008:i:11:p:376-382. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anca Bandoi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.