Test MCQ Skills Test Your Knowledge
IAS 8 Accounting Policies, Change in Estimations, and Correction of Errors Quiz
IAS 8 prescribes the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates, and corrections of errors. Accounting policies are the specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements. When an IFRS Standard or IFRS Interpretation specifically applies to a transaction, another event, or condition, an entity must apply that Standard. In the absence of an IFRS Standard that specifically applies to a transaction, another event, or condition, management uses its judgment in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgment management refers to the following sources in descending order: the requirements and guidance in IFRS Standards dealing with similar and related issues; and the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Conceptual Framework. Changes in an accounting policy are applied retrospectively unless this is impracticable or unless another IFRS Standard sets specific transitional provisions. Now Let’s check your knowledge about the IAS 8 Accounting Policies, Change in Estimations, and Correction of Errors Quiz
Advertisement:
Please wait a little bit to laod IAS 8 Correction of Errors Quiz
