Final answer:
Changes in accounting principles are typically made when significant economic shifts, industry developments, or feedback indicate a need for clearer financial reporting. Examples include major revisions to educational texts like OpenStax's Economics textbooks in response to economic data movements and global events.
Step-by-step explanation:
Changes in accounting principles are noteworthy events in the financial world, as they have the potential to significantly affect how a company's financial health is reported. When such a change is necessary, it is typically due to developments in the industry, major economic shifts, or the need to enhance the clarity and reliability of the financial statements.
For instance, OpenStax only revises its textbooks such as Principles of Macroeconomics and Principles of Microeconomics when substantial modifications are required. Such revisions may stem from significant movements in economic data, the impact of national and global events, or feedback suggesting the need for clearer writing or improved sequenced material. These revisions can affect many calculation examples and the overall presentation of economic principles in the text. In practice, whenever there are changes in accounting standards, organizations must handle the transition retrospectively, without modifying previously reported figures, or by including cumulative effects of the change in their current financial reporting period.