Accounting policies, changes in accounting estimate and errors (IAS 8) – ACCA (SBR) lectures
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What about change in method of valuation of inventory, say from FIFO to weighted average cost, is it change in policy or change in estimate?
Hi Sir please could you answer this question?
According to IAS 8, accounting policies must be adjusted retrospectively by adjusting prior period b/f balances. How will this be done if a company already audit and signs off on the prior period financial reports? will adjusting misrepresent prior period results? or will shareholders get revised financial report of prior periods?
You’re welcome
This is a change in estimate
The policy – to charge depreciation – has not changed
Before the change, the company charges depreciation as an accounting policy
After the change, the company charges depreciation as an accounting policy
So where has there been a change in policy?
Dear Sir,
Please tell me why a change in depreciation policy (e.g. straight line to reducing balance) is not a change in measurement (Accounting Policy).
Got it. I appreciate your support.