BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Changes in accounting policies and corrections of errors are generally retrospectively accounted for, whereas changes in accounting estimates are generally accounted for on a prospective basis.

Detailed explanation-2: -When a change in accounting policy is applied retrospectively, the entity shall adjust the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied.

Detailed explanation-3: -Paragraph 50 of IAS 8 notes that retrospective application might be impracticable if the required historical data had not been collected in prior periods and if it is impracticable to recreate the information.

Detailed explanation-4: -Changes in an accounting policy are applied retrospectively unless this is impracticable or unless another IFRS Standard sets specific transitional provisions. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.