LU2 - IAS 8 Class Quiz

A change in accounting estimate is

• Adjustment of the carrying amount of an asset or liability

• Change due to material omissions or misstatements in the financial statements

• A change to the IFRS principles applied to a financial statement lne item

• An adjustment to the fair value of an asset or liability

A provision is an example of

• An accounting policy

• An accounting estimate

• A "Fair Value" based item

• A Carrying Amount

A change in accounting estimate is accounted for as follows

• Retrospectively - from the beginning of the current year

• Retrospectively - from the beginning of the prior year

• Prospectively - from the beginning of the prior year

• Prospectively from the beginning of the current year

A change in accounting estimate is recognised as follows

• Adjustment to Equity

• Adjustment to P/L and a corresponding adjustment to the asset, liability or equity

• Adjustment to the fair value of an asset or liability

• Adjustment to profit and loss

A change in accounting estimates must be disclosed as follows

• In a separate note

• In the Profit Before Tax Note

• In the PPE Note

• In the Profit Before Tax Note or the standard-specific note

A change in accounting policy must be accounted for

• Retrospectively whether it is a compulsory or voluntary change

• Prospectively whether it is a voluntary change

• Prospectively if a voluntary change; retrospectively if compulsory

• Retrospectively if a voluntary change; prospectively if compulsory

Retrospective application means...

• Applied from the beginning of the current year

• Applied to the earliest period presented

• Applied from the beginning of the previous year

• Applied from the beginning of the following year

Retrospectively correcting a prior period error involves the following:

• Restating comparative figures only

• Restating the opening balance of assets, liabilities & equity only

• Restating comparative figures OR restating opening balances of assets, liabilities & equity

• Restating the prior year P/L

Disclosure requirements for a prior period error include

• Disclosure in the PPE Note

• Disclosure in the Profit Before Tax Note

• A separate note

• Disclosure in the Profit Before Tax Note or a separate note

Changing the depreciation method from the Straight Line method to the Reducing Balance method is

• A prior period error

• A change in accounting policy

• A change in accounting standard

• A change in accounting estimate