Note X - Accounting Changes and Error Corrections

Specific narrative requirements for each accounting change and/or error correction are listed below:

Change in accounting principle:

1. The nature of the change including:

   • Identification of the financial statement line item affected, and

   • Identification of the new pronouncement implemented

2. The reason for the change; if not because of the implementation of a new pronouncement, include an explanation of why the new accounting principle is preferable

Change in accounting estimate:

1. The nature of the change, including the identification of the line items affected

2. The reason for the change to an input, if applicable, unless the change in measurement is required by a GASB pronouncement.

Change to or within the reporting entity:

1. The nature of the change

2. The reason for the change

Error correction:

1. The nature of the error and the correction, including the periods affected by the error

2. Identification of the financial statement line items that are affected by the error

3. The effect on the prior period’s change in net position, fund balance, or fund net position, as applicable, had the error not occurred

Examples:

Example – Change to or within the reporting entity: During fiscal year 20XX, the (government type) experienced a (change to OR within the financial reporting entity) which resulted in adjustments to the (beginning net position OR fund net position) as identified in Column (X) of the table below.

Example – Error correction: During fiscal year 20XX, the (government type) identified (describe error). The effect of that error is shown in Column (X) of the table below.

Table format example: