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Accounting Estimates  Form

Accounting Estimates Form

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Instructions and help about Accounting Estimates

hello and welcome to this session this is professor forhat in which we will discuss accounting changes we have three types of accounting changes and those are change and accounting principle which we already discussed in the prior session we have change in accounting estimate in this session we will focus on change and accounting estimate now what is a change in accounting estimate well companies do estimates all the time bad debt expense when you compute bet that expense it's an estimate you don't know what the future but that expense will be but you'll have to book a number today and when you book that number you make an estimate when you book that number same for warranty expense if you sell a product and a warranty comes with that product you have to estimate that warranty expense therefore that's another accounting estimate period benefit by the third cost you will have the third cost well what's going to happen you're going to have

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