According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors,
which is the correct accounting treatment to be adopted by a company reporting
under IFRS?
?? Changes in accounting estimates and errors should both be accounted for
retrospectively
?? Changes in accounting estimates and errors should both be accounted for
prospectively
?? Changes in accounting estimates should be accounted for retrospectively and errors
accounted for prospectively
?? Changes in accounting estimates should be accounted for prospectively and errors
accounted for retrospectively
BPP KIT question 186
why correct answer has been selected D I think that correct answer is B
Ask the Tutor ACCA FR
IAS 8
4y ago#1Hi,
The answer is correct. For changes in estimate we change in the current period and future periods, i.e. prospectively. We do not go back and look to restate any prior year figures.
Thanks
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