AASB 108 Accounting Policies,Changes in Accounting Estimates and Errors specifies the accounting treatment for changes in accounting policies,correction of errors and changes in accounting estimates.Which of the following statement(s)in relation to these items is/are true?
A) Prior period errors are to be corrected by restating prior period information.
B) Voluntary changes in accounting policy are to be accounted for prospectively.
C) Changes in accounting estimates are to be accounted for retrospectively, unless it is impracticable to do so.
D) A change in the useful life of an asset is considered a change in accounting policy.

Question

Quizplus · Accepted Answer

A) Prior period errors are corrected by restating the comparative amounts for the prior period(s) in which the error occurred. This is in line with AASB 108's requirement for correcting errors.

AASB 108 Accounting Policies,Changes in Accounting Estimates and Errors Specifies