BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a change in accounting policy?I-the application of an accounting policy for transactions, other events or conditions that differ in substance from those previously occurringII-the application of a new accounting policy for transactions, other events or conditions that did not occur previously or were immaterial
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I only
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II only
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Both I and II
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Neither I nor II
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Explanation:
Detailed explanation-1: -Retrospective application is applying a new accounting policy to transactions, other events, and conditions as if that policy had always been applied.
Detailed explanation-2: -A change in accounting estimate is a modification of the carrying amount of a liability or an asset or the life of the asset, that results from the evaluation of the current status of, and expected future advantages and obligations linked with, assets and liabilities.
Detailed explanation-3: -10. A change in the measurement basis applied is a change in an accounting policy, according to paragraph 35 of IAS 8: 35 A change in the measurement basis applied is a change in an accounting policy, and is not a change in an accounting estimate.
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