Accounting Change (SF.IS.AccountingChange)
Accounting Change (SF.IS.AccountingChange) refers to three types of accounting changes, reported below income before taxes:
- A change from one generally accepted accounting principle to another generally accepted principle
- A change that occurs as the result of new information or as additional information is acquired
- A change from reporting as one type of entity to another type of entity
When a company presents both the gross (pre-tax) value of an accounting change and its impact on net taxes, it is presented as the gross value as Accounting Change (SF.IS.AccountingChange) while the tax impact is updated as Tax on Extraordinary Item (SF.IS.TaxonExtraordinaryItems). If such a break-out is unavailable, Accounting Change (SF.IS.AccountingChange) is utilized to present the net-of-tax impact of accounting changes.
Accounting Change (SF.IS.AccountingChange) includes:
- Tax impact of accounting changes, if it is not delineated separately.
Accounting Change (SF.IS.AccountingChange) does not include:
- Tax impact of accounting changes, if delineated separately from the pre-tax accounting change value (classified as Tax on Extraordinary Items (SF.IS.TaxonExtraordinaryItems))
- Gain or loss on accounting changes reported above net income before taxes (classified as Other Unusual Expense (Income) (SF.IS.OtherUnusualExp) for Industrial, Utility and Insurance companies; or as Other Unusual Income (SF.IS.OtherUnusualIncome) and Other Unusual Expense (SF.IS.OtherUnusualExp_Banks) for banks)