Solutions changed from the cash to the accrual basis of accounting for recognizing revenue on its service contracts on January 1, 2016.

Solutions changed from the cash to the accrual basis of accounting for recognizing revenue on its service contracts on January 1, 2016.

For each of the situations described above, provide the information indicated below assuming it is December 2016.

1.  Type of accounting change.

2.  Manner of reporting the change under current generally accepted accounting principles including

     a discussion, where applicable, of how amounts are computed.

3.  Effect of the change on the balance sheet and income statement.

4.  Footnote disclosures that would be necessary.