IAS 8 Accounting Policies, Changes In Accounting Estimates And Errors

Question 1

What is an accounting policy?

Answer 1

the specific principles, bases, conventions and riles applied by an entity in preparing and presenting the financial statements.

Question 2

What is an accounting estimate?

Answer 2

monetary amounts in financial statements that are subject to measurement uncertainty

Question 3

What is an accounting error?

Answer 3

mistakes in the financial statements, it is possible an error may not be detected until the subsequent accounting period “prior period error”

Question 4

How do you account for prior period errors?

Answer 4

correction of a material prior period error: a.) restarting the comparative figure for the prior periods in which the error occurred or b.) if the error occurred before the earliest period for which comparatives are presented, restate the opening balance of assets, liabilities and equity for the earliest prior period presented

Question 5

Accounting for accounting policies?

Answer 5

the following disclosures are required: the reason for change (significant) and the amount of the adjustment in the current period and in comparative information for prior periods