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Indicate the nature of each of the situations described below using the following three-letter code: CODE DESCRIPTION CPR: Change in principle reported retrospectively CPP: Change in principle reported prospectively CES: Change in estimate CRE: Change in reporting entity PPA: Prior period adjustment required 1. CES A competitor's advance with a new drug that renders worthless a patent with an unamortized cost of $75,000. After inflation slows for a period of year, a change from FIFO inventory costing to average inventory costing system. A particular piece of machinery on the factory floor is becoming obsolete faster than originally planned-- requires a change in useful life. 1 1 - Change from FIFO inventory method to LIFO. 1 NA A 10) TO 11 11 11 + 0 Pensio defined b 0 an achieving in excess of the amount OT return 0 0 0 1 anticipated. CO SOLO Teve in current and prior year financial statements. The financial 1 1 . 11 O statements were materially incorrect as a ( U Change Change from declining balance depreciation to straight-line. O C ID aight-line . AO O La O C 8. TO CU In order to simplify the calculation, a change from determining lower of cost or net realizable value for A TV O O SOOS ) . inventories by the individual SKU approach to an aggregate approach where similar SKUs placed in categories. 11 CU ( DD After accruing a contingency VO O ling for a lower amount.

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