Change in accounting estimate

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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June 4, 2021 at 5:19 pm #623199
Noah098
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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
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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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