Which of the following is not correct regarding the provisions of IAS No.8 on accounting changes and error corrections?
A) A change in accounting estimate is reflected in the current and future periods.
B) A change in depreciation method (such as from an accelerated method to the straight-line method)is classified as a change in estimate.
C) A change in depreciation method (such as from accelerated method to the straight-line method)is classified as a change in accounting principle.
D) IAS No.8 generally reflects a preference for restating prior results to improve comparability of financial statements.

Question

Quizplus · Accepted Answer

According to IAS No.8, a change in depreciation method is classified as a change in accounting principle, not a change in estimate. Therefore, option C is incorrect. Option A is true as changes in accounting estimate are reflected in the current and future periods. Option B is also true as a change in depreciation method is classified as a change in estimate. Option D is true as restating prior results is preferred to improve comparability of financial statements.

Which of the Following Is Not Correct Regarding the Provisions