The effect of a change in an estimate is to be recognised in the statement of comprehensive income in which of the following:

Question

Quizplus · Accepted Answer

A change in an estimate should be recognised in the period of the change if it affects that period only. This is in accordance with the principle of prudence, which requires that losses and expenses should be recognised as soon as they are probable and that gains should only be recognised when they are certain. However, if the change in estimate affects other periods, then the effect on those periods should also be recognised in the statement of comprehensive income.

The Effect of a Change in an Estimate Is to Be