Accounting policy, GAAP & adjustments · Working
Change in accounting estimate
Also called: estimate change
ELI5
Prospective revision caused by new information or experience, rather than correction of an error.
Used in conversation
“Finance needs to reconcile change in accounting estimate before the numbers are released.”
Pitch context
You will see “Change in accounting estimate” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.
Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16