SPECIAL CHANGES IN ACCOUNTING PRINCIPLE
THAT ARE APPLIED RETROACTIVELY
These changes in principle are recorded and reported in a manner similar to an error correction. The effect of the change on prior periods, net of the tax effect, will be reported on the retained earnings statement as an adjustment to the opening balance of retained earnings. If prior period statements are presented for comparative purposes in the current year, then these prior period statements would be restated to reflect retroactive application of the new method.
Note that pro-forma presentations would not be necessary for the above changes.