- This topic has 2 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
I have read the dec 2013 question 4 which concern about IAS8
But I m confuse about the treatment for change In accounting policy,estimation and error.
Do all changes can be restated to prior year?
If yes, where do the changes recognized profit&loss or Other comprehensive income ?
Hope someone can answer my question!1. Change in accounting policy result different measurement, recognition and presentation therefore we do a retrospective adjustment. if unrealistic to go back to day 1 since it already operated for 20 years, therefore we do a comparative adjustment to retained earning and restate the financial statement.
2. Change in accounting estimates particularly we already prepare the financial statement based on the best estimate, e.g. provision provided based on the best estimate we know as at financial reporting date, if the condition out from these date we do disclosure if material. if actual figure different from amount we have provide in provision, only do prospective adjustment. therefore we make the different into current year profit or loss.
3. Error of prior period result the previous year not presented faithfully, a retrospective adjustment need to be provided and restate the financial statement.1. Change in accounting policy result different measurement, recognition and presentation therefore we do a retrospective adjustment. if unrealistic to go back to day 1 since it already operated for 20 years, therefore we do a comparative adjustment to retained earning and restate the financial statement. so that user can compare like to like
2. Change in accounting estimates particularly we already prepare the financial statement based on the best estimate, e.g. provision provided based on the best estimate we know as at financial reporting date, if the condition out from these date we do disclosure if material. if actual figure different from amount we have provide in provision, only do prospective adjustment. therefore we make the different into current year profit or loss.
3. Error of prior period result the previous year not presented faithfully, a retrospective adjustment need to be provided and restate the financial statement.
- You must be logged in to reply to this topic.