Change in accounting policy, accounting estimate and error

  1. Change in accounting policy- compulsory
    Follow specific transitional provisions
  2. Change in accounting policy- voluntary
    • Apply to change retrospectively
    • Adjust the opening balance of equity
    • Adjust a comparative amount
  3. Change an accounting estimate requires
    Adjustment of the carrying amount
  4. When it is difficult to distinguish a change in accounting policy and a change in accounting estimate, the change is treated as
    A change in accounting estimate
  5. change in accounting estimate - treatment and disclosures
    • Does not relate to prior period
    • Recognize prospectively
    • disClose the Nature and amount of change in accounting estimate that affect current period and future period
  6. Accounting error - treatment and disclosures
    • Correct material prior period retrospectively in the first set of financial statements authorised for issue after their discovery
    • restate prior period Comparative amount
    • Disclose the nature and amount of prior period error
Author
yhliuaa
ID
326972
Card Set
Change in accounting policy, accounting estimate and error
Description
Change in accounting policy, accounting estimate and error
Updated