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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
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Specific principles bases conventions rules and practices applied in presenting financial statements. This defines:
Adjustment of the carrying amount of an asset or a liability or the consumption of an asset. This defines:
Applying a new policy to transactions other events and conditions as if that policy had always been applied. This is:
Correcting the recognition measurement and disclosure of amounts in financial statements as if a prior-period error had never occurred. This is:
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You accept advice to accelerate your depreciation policy. To make the change, you will need:
Changes in accounting policies:
When you have not applied a new Standard that has been issued but is not yet effective:
A gain recorded on the outcome of a contingency, such as a lawsuit, is:
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