uestion 1

1 / 1 pts

This means “correcting the recognition, measurement and disclosure of amounts of elements of
financial statements as if a prior period error had never occurred”.

Correct!
 
Retrospective restatement
 
Prospective restatement.
 
Prospective application
 
Retrospective application.
 
Question 2
1 / 1 pts

Which of the following statements in relation to accounting changes is true?

 
Prior statements should be restated for changes in accounting estimate.
Correct!
 
A change from expensing certain costs to capitalizing such costs due to a change in the period
benefited should be handled as a change in accounting estimate.
 
Correction of prior period error should be considered as an adjustment of current net income.
 
Changes in accounting policy are always handled in the current period and prospective period.
 
Question 3
1 / 1 pts

Why is retrospective treatment of changes in accounting estimate prohibited?

 
Correct!
 
Changes in estimate are normal recurring corrections and adjustments which are the natural
result of the accounting process.
 
The IFRS is silent on the issue.
 
The retrospective treatment for any type of presentation is not allowed.
 
Retrospective treatment of changes in accounting estimate is required by IFRS.