F1

Question 1

change in accounting estimate

Answer 1

accounted for prospectively

Question 2

change in accounting principle

Answer 2

adjustment to retained earnings(retrospectively)

Question 3

Enhancing characteristics

Answer 3

1.Comparability C
2.Verifiability V
3.Timeliness T
4.Understanability U

Question 4

Change in accounting principle that is inseperable from change in accounting estimate

Answer 4

Reported as change in estimate as component of income from continuing operations in period of change and future period if change affects both

Question 5

current asset/liability

Answer 5

Cummulative billings>cummulative costs+cummulative GP=current liability

Question 6

change from income tax basis to accrual

Answer 6

Error correction require restatement of prior period financial statements

Question 7

Satisfied over time

Answer 7

Output method
Value transferred to the customer relative to total value to be transferred
eg units produced or delivered, time elapsed,milestones acheived,appraisals of results achieved
Input Method
Recognises revenue based on satisfying performance obligation relative to total performance obligation
eg: resources consumed,labour hours expended, time elapsed,costs incurred relative to total expected costs

Question 8

Financing gain

Answer 8

Repurchase price > both Sale price and expected market value