In CPA accounting, when is the earliest beginning of the previous period? Can you give an example.

The "early early beginning of the presentation period" can be understood by the following assumptions:

1. It is assumed that only the balance sheet is adjusted retroactively.

Assuming that it is an annual statement, the same below). The balance sheet is a statement of balances, and the amounts in the statement are the accumulated balances; Since the current balance sheet only compares the closing number with the beginning of the period.

Accounting policy changes at this time.

The cumulative effect can be defined as the retained earnings at the beginning of the year of the change, calculated retrospectively for prior periods in accordance with the changed accounting policies.

The difference between the amount that should be due and the amount that is available.

2. It is assumed that only the income statement is adjusted retroactively.

The income statement is a period statement, and the amount in the statement is the amount incurred in the current period (this year), and has nothing to do with the amount incurred in other periods; Since the current income statement is a comparison of the current period and the previous period.

Therefore, only the previous period of the current period will need to be adjusted retrospectively. In this case, the cumulative effect of a change in accounting policy can be defined as the difference between the amount of retained earnings at the beginning of the year of the change that should be retrospectively calculated for the presentation of the prior period and the amount available under the changed accounting policy.

The period of retrospective adjustment in this definition refers to "prior periods" and not to "prior periods".

3. It is assumed that the statement of changes in owners' equity should be adjusted retrospectively.

The statement of changes in owners' equity is a new accounting standard for business enterprises.

A major accounting statement has been added.

This table is also a period statement, which is a comparison of the amount of the current year (current period) and the amount of the previous year (previous period), and there is an item of "Balance at the beginning of the current year" in both the amount of the current year and the amount of the previous year.

This is effectively the statement of changes in owners' equity for the entire accounting period.

It is divided into the following periods: the previous accounting period to the beginning of the previous year, the previous year, and the current year. The cumulative impact of the change in accounting policy at this time can be defined as:

The difference between the amount due to and the current amount of the prior period's retained earnings is reported retrospectively in accordance with the changed accounting policies.

There is only a two-word difference between the words "the beginning of the pre-presentation period" in this definition and the original definition of "the earliest beginning of the pre-presentation period".

4. Suppose that comparative financial statements for two periods that are not in close proxies are to be prepared.

In this case, the cumulative effect of retrospective adjustments to a change in accounting policy is the difference between the amount due to the earliest initial retained earnings of the previous period and the current amount calculated retrospectively for prior periods in accordance with the changed accounting policy.

This is also the definition of the cumulative impact of changes in accounting policies in the new standard, which shows that the definition of the cumulative impact of changes in accounting policies in the new standard is more general and comprehensive.

In fact, the balance sheet, income statement, and statement of changes in owners' equity are comparative financial statements, which are just comparisons of two adjacent periods, so when an enterprise does not prepare comparative financial statements for two consecutive years, the definition of the cumulative impact of changes in accounting policies is the definition in the third assumption, that is, "the earliest beginning of the previous period" refers to "the beginning of the previous period".

Personal opinion: because the disclosure is a comparative statement, 1. Based on the 2011 financial statements, it is the beginning of 2010; 2. Based on the financial statements in April 2012, it is the beginning of 2011. FYI.

Ask the same question, it's dead, it's really tangled.

It seems to be related to the comparative statement of our country, and it reflects several years at the same time?

In the earliest days, it refers to expenses such as income, expenses, salaries, materials, etc.

Such as: cost: including the company's daily expenses, workers' wages.

Raw materials. The company's main business income - cost = profit ......

If you are calculating the 2007 financial statements, the change in accounting policy that occurred in '07, then the earliest start is January 1, 2006.

To put it simply, if you break the sentence, it is to report the early stage + the earliest beginning.

The beginning of the previous period refers to the beginning of 2009.

The earliest part of the period of presentation refers to the presentation of the second financial statement in the comparative financial statements, and the earliest beginning of the period of presentation refers to the beginning of 2008.

Take investment real estate, for example, for example, in 17 years this year. The early period is 16 years, and the earliest of the early period is actually the beginning of 16, that is, the end of 15 years. So it's the impact on retained earnings 15 years ago.

For example, this office building was bought for 80 million on December 31, 13. Measured by the cost model in use at the time. Depreciation of 1 million per year.

It is now measured at fair value. The fair value at the end of 14 years was 83 million, and the fair value at the end of 15 years was 85 million. Taking 14 as an example, the original policy of 14 was to generate a profit of negative 1 million, and the new policy is to increase by 3 million, so the total impact is 4 million.

Of course, 25% of income tax is deducted. The impact on retained earnings is 3 million. Similarly, the 15-year impact is 225.

Therefore, the cumulative number of changes is 14+15, which is 5.25 million.

1. Understanding of the cumulative impact of changes in accounting policies in the note:

The cumulative effect of a change in accounting policy is the difference between the amount attributable to the earliest initial retained earnings of the previous period and the amount available in accordance with the changed accounting policy for prior periods. Based on the wording of the above definition, the cumulative effect of a change in accounting policy can be broken down into the difference between the following two amounts:

1) In the period when the accounting policy is changed, the amount of retained earnings at the earliest beginning of the previous period is calculated retrospectively according to the changed accounting policy;

2) In the period when the accounting policy is changed, the amount of retained earnings at the earliest beginning of the previous period is presented.

In the case that the financial statements only provide comparative data for the previous comparable accounting period of the presented items, the amount of retained earnings at the earliest beginning of the previous period is reported in item 2 above in the period when the accounting policy is changed, that is, the opening retained earnings reflected in the balance sheet of the previous period, which can be obtained from the balance sheet items of the previous year; The amount of retained earnings at the beginning of the previous period obtained from retrospective calculation of previous periods in accordance with the changed accounting policy needs to be determined is the first item that needs to be calculated.

2. The cumulative impact can usually be calculated by the following steps:

As a first step, the affected prior period transactions or events are recalculated in accordance with the new accounting policies;

The second step is to calculate the difference between the two accounting policies:

The third step is to calculate the income tax impact amount of the difference (if the income tax impact amount needs to be adjusted);

The fourth step is to determine the after-tax difference for each period in the previous period;

The fifth step is to calculate the cumulative impact of the change in accounting policy.

There are generally four accounting statements provided by enterprises: (1) balance sheet, (2) income statement, (3) cash flow statement, and (4) statement of changes in owners' equity.

Of these, only (2) and (4) are comparative statements, and the amounts for the current year and the previous year are provided for each item in both the statements.

If there is a change in accounting policy in '08, the two statements for (1) and (3) are adjusted for '08 and (2) and (4) for '07 and '08.

Could you please type a sentence together?

Presentation: It is listed one by one in detail and explained at the beginning of the period: refers to the beginning of the accounting period.

Previous Period: The previous accounting period.

Could you please put a sentence together as a group?

Presentation: It is listed one by one in detail, and the object hole is added to illustrate.

Beginning: Refers to the beginning of the accounting period.

Previous Period: The previous accounting period.