AASB 108 requires that changes to accounting estimates be dealt with prospectively.This means that the effect of a past overestimate of doubtful debts expense is:

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AASB 108 requires prospective treatment of changes to accounting estimates. Therefore, the effect of a past overestimate of doubtful debts expense should be recognised in the current reporting period, and not used to increase this period's estimated expense.

AASB 108 Requires That Changes to Accounting Estimates Be Dealt