SFAS 154 specifies that the effects of a change in accounting principle should be recorded on a prospective basis when the change is from the

  1. Cash basis of accounting for vacation pay to the accrual basis.
  2. Straight-line method of depreciation for previously recorded assets to the double-declining balance method.
  3. Presentation of statements of individual companies to their inclusion in consolidated statements.
  4. Completed-contract method of accounting for long-term construction-type contracts to the percentage-of-completion method.