Mod 9B/C: Error Correction/ Accounting Changes

Question 0

Accounting changes are changes in (3)?

Answer 0

Accounting Principle, in Estimate, or in the Reporting Entity.

Question 1

Counterbalancing Errors are?

Answer 1

Self-correcting errors because they affect two periods.

Question 2

Restatement is?

Answer 2

Process of revising previously issued financial statements to correct an Error.

Question 3

Retrospective application is?

Answer 3

The application of a difference in Accounting Principal to previously issued financial statements.

(as if the principal has always been used)

Question 4

Changes in Accounting Estimates are accounted for on a?

Answer 4

Prospective Basis. i.e. the financial statements are not restated or retrospectively adjusted.

Question 5

Changes in Reporting Entities are accounted for?

Answer 5

Retrospectively for all prior periods presented.

Question 6

Change in Accounting Principal is accounted for?

Answer 6

With a Retrospective application.

Question 7

IFRS requires changes in accounting principals to be reported?

Answer 7

On a Retrospective basis.