BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -IAS 8 prescribes the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and corrections of errors.

Detailed explanation-2: -Solution: B A change in the method of inventory valuation would be classified as a change in accounting policy under IAS 8. The allowance for doubtful debts, change in useful life and depreciation methods are all accounting estimates.

Detailed explanation-3: -Accounting Policies and Accounting Estimates (Potential Amendments to IAS 8) [Completed] Effective date: The amendments are effective for annual periods beginning on or after January 1, 2023 and changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.

Detailed explanation-4: -Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

Detailed explanation-5: -IAS 8 Correction of Prior Period Accounting Error Errors must be distinguished from changes made to prior period estimates that had been based on information that best reflected the conditions and circumstances that existed at the reporting date.