How should a change in accounting principle be recorded and reported?
Recording and Reporting Change in Accounting PrincipleWhenever a change in principle is made by a company, the company must retrospectively apply the change to all prior reporting periods, as if the new principle had always been in place, unless it is impractical to do so. This is known as "restating." Keep in mind that these requirements only impact direct effects, not indirect effects.
If the adoption of a new accounting principle results in a material change in an asset or liability, the adjustment must be reported to the retained earnings' opening balance. Additionally, the nature of any change in accounting principle must be disclosed in the footnotes of financial statements, along with the rationale used to justify the change. The FASB issues statements about accounting changes and error corrections that detail how to reflect changes in financial reports.
Read more: How should a change in accounting principle be recorded and reported? | Investopedia
https://www.investopedia.com/ask/answers/102714/how-should-change-accounting-principle-be-recorded-and-reported.asp#ixzz5YVtkTM5y