Will a change in the company's inventory costing method (e.g. from weighted average to FIFO) warrant a prior period adjustment? If yes, why?

The weighted average cost nethod uses the formula:total cosf of items in inventiry available fir sale divided by total number of units available for sale -In contrast,FIFO means that the costs assigned to goods are that costs for the first goods bought. -In general changes on accounting policyis only permitef,if it is required by interpetation , or Standard,orresilts in the ginsncial statements.So it will result a prior period adjustments

Since Change In Inventory Valuation Method Is Treated As change In Accounting Hence A Prior Period Adjustment or In Other Word Change In Accounting Policy Applied Retrospective .

 

According To Ias Change In Accounting Policy Should Be Applied Retrospectively Or In Other Word Prior Period Adjustment.

 

Change In Accounting Policy Is Only Permited , If It Is Required By Standard or Interpetation Or Results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity's financial position, financial performance, or cash flows.

 

 

 

 

 

trospective application means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied

Retrospective application means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied

Yes.  This will result in a prior period adjustments.