IAS 8

Which of the following event(s) are accounted for retrospectively?

• Changes in estimates

• Changes in estimates, changes in accounting policies

• Changes in accounting policies, corrections of errors

• Corrections of errors

Which of the following event(s) are accounted for prospectively?

• Changes in estimates

• Changes in estimates, changes in accounting policies

• Changes in accounting policies, corrections of errors

• Corrections of errors

Which of the following does NOT constitute a change in estimate?

• Change in useful life of an asset (IAS 16, 38 and 40)

• Change in number of share options expected to vest (IFRS 2)

• Change in depreciation/ amortisation method (e.g. straight-line, unit of production)

• Change in measurement basis (e.g. cost model, revaluation model)

Since FY2020, Company A erroneously depreciated PPE over a period of 5 years, instead of 7 years. Which period(s) would be covered by the correction of error note included in the AFS for FY2022?

• FY2020

• FY2020 & FY2021

• FY2020 to FY2022

• This constitutes a change in estimate, not a correction of error.

Which one of the following changes in accounting policies would be permissible?

• All changes in accounting policies are permissible

• Cost model to revaluation model

• Revaluation model to cost model

• Fair value model to cost model

How many periods will be disclosed in the SFP portion of a change in accounting policy note, assuming that the company has been operating for several years?

• One year

• Two years

• Three years

• All periods since incorporation

Should a company always correct prior period errors?

• Yes

• No, only if it is material

• No, only if it is material and the information was available and obtainable before the AFS were authorised for issue

• No, only if the information was available and obtainable before the AFS were authorised for issue

Company B made erroneously recorded revenue of R250 000 instead of R2 500 000 in the current year. Should the correction of this error be disclosed in the notes to the AFS in the current year?

• Yes

• No