Why is retrospective treatment of changes in accounting estimated prohibited? A. Changes in estimate are normally corrections and adjustments which are the natural result of the accounting process B. The retrospective treatment for any type of presentation is not allowed C. Retrospective treatment of changes in accounting estimate is required by IFRS D. The IFRS is silent on the issue

Q: A change in accounting estimate is accounted for by Prospective application Retrospective…

A: A change in accounting estimate refers to an adjustment made to an asset or liability on the books…

Q: Interest expense is listed on the Income Statement in 'Other revenue and Expenses'. Assess the…

A: Interest Expenses: The cost that an organization must pay to service its interest obligation is…

Q: Which of the following should be treated as a change in accounting policy? A. A change is made in…

A: The accounting policies are referred to as the bases, ideas, and concepts that an entity uses to…

Q: hen there is a lack of consistent application of GAAP due to a new accounting pronouncement, no…

A: Audit need to give opinion of true and fair view of financial statement but if auditor need to draw…

Q: Accountants very often are required to make estimates, and very often those estimates prove…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Changes in accounting policy are Permitted if the change will result in a more reliable and more…

A: Change in accounting policy refers to change in the method of accounting principles or rules…

Q: When it is difficult to distinguish between a change of estimate and a change in accounting policy,…

A: Answer : (a) Treat the entire change as a change in  estimate with appropriate  disclosure.

Q: All of the following are causes for the addition of an explanatory paragraph except for: Select one:…

A: Audit report contains the details about the findings of the auditor in the process of audit and…

Q: IAS 37, Provisions, Contingent Liabilities and Contingent Assets was issued in 1998. The  Standard…

A: The objective of IAS 37 is to ensure proper recognition and disclosure of provisions, contingent…

Q: The accounting and auditing literature discusses several different types of accounting changes. For…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Vhich of the following statements is incorrect regarding statement of financial osition errors? DIt…

A: Solution Concept Real account                 Real account is a permanent account that is not closed…

Q: Under IFRS, changes in accounting policies are a. permitted if the change will result in a more…

A:

Q: Which of the following does not constitute fair presentation and compliance with IFRS? A) an entity…

A: When financial statements are devoid of substantial misstatements and adequately portray an entity's…

Q: Prior period errors: a. Do not include mistake in the application of policy b. Do not affect…

A: Earlier period blunders are oversights from, and misquotes in, the substance's budget summaries for…

Q: Change in an accounting principle is accounted for O by a prior period adjustment. O by a…

A: Accounting principles are those set of rules, policies and guidelines which are used for making…

Q: What terms can be used to express an unmodified opinion on financial statements prepared in…

A: Financial statements are the reports those are presented by the business to the interested parties…

Q: examples of changes that affect consistency and

A: According to the consistency principle of accounting, an accounting policy or method should be…

Q: Assuming that the data collected in the accounting information system is free from material errors…

A: The information recorded in accounting system can face several risks like inherent risk and control…

Q: The use of the cumulative effect method to account for a change in accounting principle violates the…

A: Accounting principles are the set of rules which define the way accounts should be prepared and…

Q: Which statement is incorrect concerning accounting estimate a.As a result of uncertainties inherent…

A: A change in the accounting estimate can be defined as the change in the carrying value of the…

Q: With r IFRS egard to the correction of accounting errors, what is the difference between U.S. GAAP…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: Prior period errors are omissions from and misstatements in the financial statements for one or more…

A: Prior period items means those items which arises in current year due to error and omission in the…

Q: Something is deemed to be 'material' if its omission, non-disclosure or misstatement is likely to…

A: Financial statements are statements that are prepared at the end of the period in order to analyse…

Q: s only in the notes. c. Either a or b as an accounting policy choice. d. None of these. The PFRS…

A: Accounting is a medium of communication, like any languages that we use. For example, two people can…

Q: Which of the following would be considered a change that affects consistency? * Change in accounting…

A: Consistency principles says that method and principles applying in preparing the financial statement…

Q: From the options given below which of the following is not the reason of inherent limitation of…

A: Inherent limitation of audit comprises of all those things that are responsible for limiting or…

Q: The following does not constitute fair presentation and compliance with IFRS: a)  an entity rectify…

A: IFRS refers to International Financial Reporting Standards. It is a set of rules or guidelines which…

Q: For which of the following events would an auditor issue a report that does not make any reference…

A: An auditor is appointed to check the accuracy of the financial statement prepared by the company.

Q: According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must…

A: Accounting policies are the measures, principles or rules which are applied by the entities so that…

Q: The accounting and auditing literature discusses several different types of accounting changes. For…

A: Given the following circumstances under which the auditor needs to add a paragraph to the audit…

Q: Which of the following is not one of the suggested approaches to reporting changes in the accounts?…

A: Reporting changes: These implies to the changes that are required to make to the accounts when there…

Q: Accounting practitioners have criticized some proposed accounting standards on the grounds that they…

A: Accounting: Financial information is recorded in the books of accounts through accounting.

Q: Which of the following accounting changes is always accounted for prospectively? O correction of an…

A: Changes in accounting policies and corrections of errors are accounted for retrospectively, However…

Q: When it is difficult to distinguish between a change in accounting estimate and a change in…

A: Accounting Policy:-It is specific principles, rules, practices which get applied in the financial…

Q: What terms can be used to express an unmodified opinion on financial statements prepared in…

A: An unmodified opinion is expressed when the auditor concludes that financial statements are…

Q: Which of the following is false? a.    GAAP and IFRS have the same absolute standard regarding the…

A: International Financial Reporting Standard (IFRS): An international standard for identifying,…

Q: Would a change from LIFO to FIFO be a change in accounting principle or a change of estimate?How…

A: Describe whether the change from LIFO to FIFO would be a change in accounting principle or a change…

Q: Which of the following statements is true regarding correcting errors in previously issued financial…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: ow they are reported. What are the disclosure requirements for correction of errors.  Please see…

A: Accounting Errors : A non-fraudulent inconsistency in financial documents is referred to as an…

Q: Generally accepted methods of accounting for a change in accounting principle include

A: When a change in accounting principle takes place then the concerned company will have to ensure…

Q: Discuss how a change in accounting policy is handled when it is impractical to ascertain earlier…

A: This question explains about  impractical to ascertain earlier values due to unforeseen…

Q: describe the fi nancial reporting treatment and analysis of non-recurring items (including…

A: Below are the analysis and reporting treatment-