A move from the cash basis to the accrual basis of accounting is an example of correcting an error in previously released financial statements.
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A change in an accounting concept or assumption should be explained by how it benefits and effects the financial statements. Depending on the magnitude, these adjustments should be noted in the footnotes to accounts. A move from the cash basis to the accrual basis of accounting is an example of correcting an error in previously released financial statements. We do not account for transactions that do not involve cash on the cash basis, but we do on the accrual basis.
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