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Hi Mike!
Concerning IAS 8, when we say applied retrospectively, do we adjust the opening or closing balance of the comparative figures?
And what effect does it has on the current year figures?
When we apply something retrospectively, we restate the figures from last year as though this new policy had ALWAYS been in operation
So we need to go back to, for example, date of acquisition of the TNCA and recalculate the depreciation as though it had always been accounted for under this new policy
Does that mean that “… we adjust the opening or closing balance of the comparative figures?”
Yes and yes – we adjust both opening and closing to arrive at the situation that we would have arrived at had we applied this new policy from day 1 year 1
OK?
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