Currently. Report cumulative effect of the change in the current period on current year income statement.

1
Accounting Changes 3 possible approaches to
apply

1. Currently. Report cumulative effect of the
   change in the current period on current year
   income statement.
2. Retrospectively. Adjust prior years statements
   that are presented in the financial statements to
   reflect the newly adopted principle. Record any
   cumulative effect as an adjustment to beginning
   R/E for earliest period presented.
3. Prospectively. No change is made to previously
   reported results. No cumulative adjustment.
   Apply new principle on in current and future
   periods.