IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors. Required: Describe the procedures an entity shall apply in selecting an accounting policy.

IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors. Required: Describe the procedures an entity shall apply in selecting an accounting policy.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.2: Golden Bear Golf, Inc.

Problem 5Q

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The accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through c.), indicate whether the auditor should add a paragraph to the audit report, assuming that the change had a material effect on the financial statements and was properly justified, accounted for, and disclosed. Assume that the organization is a U.S. non-public company. a. Change from one GAAP to another GAAP b. Change in accounting estimate not affected by a change in accounting principle c. Change in accounting estimate affected by a change in accounting principle d. Correction of an error c. Change from non-GAAP to GAAP (a special case of correction of an error)
Identify the circumstances under which it may be appropriate to change accounting policy in accordance with the guidance given in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
MFRS108: Accounting Policies, Changes in Accounting Estimates andErrors contains guidance on the use of accounting policies and accountingestimates.Explain the basis on which the management of an entity must select its accounting policies in the absence of a Standard or Interpretation.
According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must select and apply its accounting policies consistently from one period to the next and among various items in the financial statements. However, an entity may change its accounting policies under certain conditions. Required: Identify the circumstances under which it may be appropriate to change accounting policy in accordance with the guidance given in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
IFRS requires companies to use which method for reporting changes in accounting policies? a. Cumulative effect approach. b. Retrospective approach. c. Prospective approach. d. Averaging approach.
Which of the following is most associated with financial accounting reports? a.prepared in accordance with GAAP b.can have both objective and subjective information c.can be prepared for the entity or segment d.can be prepared periodically, or as needed
The accounting and disclosure requirements for changes in accounting policies
Distinguish between Opinions of the Accounting Principle Board and Accounting Standards Updates.
In order to report on changes in accounting rules, the FASB needs a certain technique.