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hi mikew
can u tell me the diff between an accounting policy and estimate
the change on a method for depreciation is said to be that of a change ina ccounting estimate,
whearas for change of method for inventory is said to be that of a policy. anyway since there is a change in the emasurement of the asset carrying value it is to be accounting estimate so why policy
Here are two definitions from IAS 8
“Key definitions
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements
A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability.”
I believe that that does it, don’t you?
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