Summary of Statement No. 3

Reporting Accounting Changes in Interim FinancialStatements—an amendment of APB Opinion No. 28 (Issued 12/74)


This Statement amends APB Opinion No. 28, Interim Financial Reporting with respect to two aspects of reporting accounting changes in interim financial reports. This Statement specifies that certain changes in accounting principles-termed "cumulative effect type" accounting changes-made in other than the first interim period of the year will result in the restatement of financial information for the earlier interim periods of that year. It also requires certain financial statement disclosures for situations in which a company changes to the Last-In, First-Out (LIFO) method of inventory pricing but is unable to determine the cumulative effect of that change.