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Change in accounting estimate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Change in accounting estimate

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • June 4, 2021 at 5:19 pm #623199
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Sir change in carrying amount or NRV of an asset is considered as a change in accounting estimate whereas a reduction in carrying amount of an asset from $X to $0 is considered a write off, but not a change in accounting estimate.

    Why so?

    June 5, 2021 at 9:04 am #623235
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3427
    • ☆☆☆☆☆

    They are both changes in accounting estimate.

    As stated before, don’t ‘over-think’ in the exam or you will get confused.:)

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