4. Why is an entity permitted to change an account:policy?The initial adoption of an accoùnting policy to carrya.The change from cost model to revaluation model inmeasuring property, plant and equipment.A change in the measurement basis.C All of these are considered change in accountingfavorable profit picture.с.cash flows.The change is made by the internal auditorpolicy.accounting policy?. A change is made in the method of calculating theprovision for uncollectible accounts receivable.A change from cost model to fair value model inmeasuring investment property.s An entity engaging in construction contract for thefirst time needs on accounting policy to deal with this.d. All of these qualify as change in accounting policy.adjustment to the financial statements?a. Current period adjustmentb. Prospective adjustmentC. Retrospective adjustmentd. Current and prospective adjustment6. Achange in accounting policy requires that the cumulativeeffect of the change for prior periods should be reportedas an adjustment to10. When it is difficult to distinguish between a change inaccounting estimate and a change in accounting policy,the change is treated asa. Beginning retained earnings for the earliest periodpresented.b. Net income for the period in which the changeoccurred.c. Comprehensive income for the earliest periodpresented.d. Shareholders' equity for the period in which the changeoccurred.a. Change in accounting estimate with appropriatedisclosureb. Change in accounting policyc. Correction of an errord. Change in accounting estimate with no appropriatedisclosure7. Which of the following is accounted for as a change inaccounting policy?a. A change in the estimated useful life of property, plantand equipmentb. A change from cash basis to accrual basis of accountingc. A change from expensing immaterial expenditures todeferring and amortizing them when materiald. A change in inventory valuation from FIFO to averagemethoda. The change allow the entity to a moreabout and5. A in policy what kind ofb The would in the statementsproviding more and information 2. In the absence of an accounting standard that applies.Which is the first step within the hierarchy of guidanceProblem 11-11 Multiple choice (IFRS)when selecting accounting policies?b. Apply the requirements in IFRS dealing with similarApply a standard from IFRS if it specifically relates1."hen selecting accounting policies?a.Apply a standard from IFRS if it specifically relatesto the transaction.Apply the requirements in IFRS dealing with similarand related issue.Consider the applicability of the definitions,c.recognition criteria and measurement concepts in theConceptual Framework.1 Consider the most recent pronouncements of otherstandard setting bodies.e In the absence of an accounting standard that applies.specifically to a transaction, what is the mostauthoritative source in developing and applying anaccounting policy?a The requirement and guidance in the standard orinterpretation dealing with similar and related issueb. The definition, recognition criteria and measurementof asset, liability, income and expense in theConceptual FrameworkC. Most recent pronouncement of other standard-settingbodyd. Accounting literature and accepted industry practice3. A change in accounting policy shall be made whenI. Required by law.II. Required by an accounting standard.III. The change will result in more relevant or reliableinformation about the financial position, financialperformance and cash flows of the entity.a I and III onlyb. II and III onlyC. I and II onlyd. I, II and III251

Question

4. Why is an entity permitted to change an account:policy?The initial adoption of an accoùnting policy to carrya.The change from cost model to revaluation model inmeasuring property, plant and equipment.A change in the measurement basis.C All of these are considered change in accountingfavorable profit picture.с.cash flows.The change is made by the internal auditorpolicy.accounting policy?. A change is made in the method of calculating theprovision for uncollectible accounts receivable.A change from cost model to fair value model inmeasuring investment property.s An entity engaging in construction contract for thefirst time needs on accounting policy to deal with this.d. All of these qualify as change in accounting policy.adjustment to the financial statements?a. Current period adjustmentb. Prospective adjustmentC. Retrospective adjustmentd. Current and prospective adjustment6. Achange in accounting policy requires that the cumulativeeffect of the change for prior periods should be reportedas an adjustment to10. When it is difficult to distinguish between a change inaccounting estimate and a change in accounting policy,the change is treated asa. Beginning retained earnings for the earliest periodpresented.b. Net income for the period in which the changeoccurred.c. Comprehensive income for the earliest periodpresented.d. Shareholders' equity for the period in which the changeoccurred.a. Change in accounting estimate with appropriatedisclosureb. Change in accounting policyc. Correction of an errord. Change in accounting estimate with no appropriatedisclosure7. Which of the following is accounted for as a change inaccounting policy?a. A change in the estimated useful life of property, plantand equipmentb. A change from cash basis to accrual basis of accountingc. A change from expensing immaterial expenditures todeferring and amortizing them when materiald. A change in inventory valuation from FIFO to averagemethoda. The change allow the entity to a moreabout and5. A in policy what kind ofb The would in the statementsproviding more and information 2. In the absence of an accounting standard that applies.Which is the first step within the hierarchy of guidanceProblem 11-11 Multiple choice (IFRS)when selecting accounting policies?b. Apply the requirements in IFRS dealing with similarApply a standard from IFRS if it specifically relates1.&#34;hen selecting accounting policies?a.Apply a standard from IFRS if it specifically relatesto the transaction.Apply the requirements in IFRS dealing with similarand related issue.Consider the applicability of the definitions,c.recognition criteria and measurement concepts in theConceptual Framework.1 Consider the most recent pronouncements of otherstandard setting bodies.e In the absence of an accounting standard that applies.specifically to a transaction, what is the mostauthoritative source in developing and applying anaccounting policy?a The requirement and guidance in the standard orinterpretation dealing with similar and related issueb. The definition, recognition criteria and measurementof asset, liability, income and expense in theConceptual FrameworkC. Most recent pronouncement of other standard-settingbodyd. Accounting literature and accepted industry practice3. A change in accounting policy shall be made whenI. Required by law.II. Required by an accounting standard.III. The change will result in more relevant or reliableinformation about the financial position, financialperformance and cash flows of the entity.a I and III onlyb. II and III onlyC. I and II onlyd. I, II and III251

Accepted Answer

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Since there are multiple questions, we will answer only first question.