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First of all thanking you for the great lectures.
Could you please briefly explain how to differentiate accounting policy from estimate? I read somewhere that change in Accounting estimate is and adjustment to the Carrying value or related expenses. Similarly It would be great if there’s some point like this for accounting policy as well.
Thanks in advance.
Estimate – change in provision (IAS 37) or allowance (IAS 16, IAS 38 etc)
Policy – just about anything else – re-classifying expense from admin to COS, moving from cost model to FV model, inventory (FIFO to LIFO)
As always, ensure you learn IAS 8 definition of accounting policy
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