Accounting policies, changes in accounting estimate and errors (IAS 8) - ACCA (SBR) lectures
YouTube video
7 Comments
M
Moji·
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?
K
Khiloni·
Hi Sir please could you answer this question?
A
Amy·
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?
M
MikeLittleTutor·
You're welcome
M
MikeLittleTutor·
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?
G
Guchipu·
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).
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?
Please tell me why a change in depreciation policy (e.g. straight line to reducing balance) is not a change in measurement (Accounting Policy).