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  3. on january 1, year 3, a company changed its invent

On January 1, Year 3, a company changed its inventory costing method from LIFO to...

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Accounting

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On January 1, Year 3, a company changed its inventory costing method from LIFO to FIFO. The company's contain comparative information for Year 2. How should the company present the Year 1 effect of the change in accounting principle in its Year 3 comparative financial statements? As a note disclosure only As an adjustment to the beginning Year 2 inventory balance with an offsetting adjustment to beginning Year 2 retained earnings: As part of income from continuing operations in the Year 2 income statement As an extraordinary item in the Year 2 income statement

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