Accounting Changes

Question 1

Info

Answer 1

Started on 19 August 2014 @
Total questions 24
To do at a time 24
Practice session 78 or so

Question 2

appropriate reporting treatment for a change in accounting estimate?

Answer 2

In the period of change and future periods if the change affects both.

Question 3

Under IFRS, a voluntary change in accounting method is applied:

Answer 3

Retrospectively.

Question 4

A change in the salvage value of an asset depreciated on a straight-line basis, arising because additional information has been obtained, is

Answer 4

An accounting change that should be reflected in the period of change and future periods if the change affects both.

Question 5

A change in accounting principle that would require retrospective application to all prior periods would be a change

Answer 5

From using the percentage-of-completion method of accounting for long-term construction contracts to the completed contract method.

Question 6

From the straight-line method of depreciation to the double-declining balance method.

Answer 6

that a change in depreciation methods is treated as a change in accounting estimate.

Question 7

From reporting revenues on a cash basis to reporting on an accrual basis.

Answer 7

because a change from a non-GAAP accounting method to GAAP is a correction of an error.