The effect of a revision of an accounting estimate must be recognised in profit and loss in which reporting periods?
A) In the present, prior (by adjusting retained earnings) and future periods affected.
B) In the present and future periods affected.
C) In the present and prior reporting periods (by adjusting retained earnings).
D) Revisions to accounting estimates should not be recognised in any period.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Revisions of accounting estimates are recognized in the period of the change and future periods if the change affects both. Prior periods are not adjusted.

The Effect of a Revision of an Accounting Estimate Must