Accounting changes and errors corrections

Question 1

Change in accounting principal inseparable from a change in accounting estimate is treated as?

Answer 1

Change in accounting estimate and its application is prospectively.

Question 2

Whenever it is impossible to determine a change in accounting estimate or a change in accounting principle how should the change be treated?

Answer 2

Change in accounting estimate and it should be treated prospectively

Question 3

How should correction of error should be reported in the financial statements?

Answer 3

Correction of errors should be adjusted to retained earnings net of tax.

Question 4

How should changes in accounting principles be treated?

Answer 4

Changes in accounting principles should be treated retrospectively and adjust Beg retained earnings for the earliest period presented. Comparative financial statements should be restated.