J 7. An example of a change in account
F gw change in accounting
1-9. Intemational Fit
‘T 43. Achange in the measurement basis is app!
¥ 14, The correction of a prior period error sI
| 12. Anentity shall account
17 45, The corrections of an error shall be applied prospect
132 Chapter 5 - PAS.
8 Accounting Policies, Changes I Accounting Estimates and é,
rors
Exercise 5-1. True or False 7
Write your answer before the number
1 pasa provides the gudelines whet shoul be dicated a azounting pots
. coon policies are the specific principles, bases, conventions, ae
applied by an entity in preparing and presenting financial statements, * and ractn,
% : ‘i
3. If there is no available standard which covers a set of transaction, conditions, or,
, OF events,
management may use its judgement in developit i
ping and applying an a
produces relevant and reliable information. See ert
4... Changes in Accounting Policies shall be accounted for throu; st
igh retrospective rest
5. An entity shall select and apply its accounting policies consistently to similar jr
unless an IFRS specifically requires or permits categorization of items for which differ
rent,
* policies may be appropriate.
_ F 6. When it is dificult to distinguish. a change In an accounting policy from a change in
an
the change is treated as a change in accounting policy.
ing policy is an application of anew accounting pol
ditions that differ in substance from those Be
accounting estimate,
transactions, other events or con'
occurring.
policies Is an adjustment of the carrying amount of an asset ora
liability, or the amount of the periodic consumption of an asset, ‘that results from the
assessment of the periodic consumption of an asset, that results from the assessment of the
present status of, and expected future benefits and obligations associated with, assets and
liabilities.
includes Standards Interpretation Committee
inancial Reporting Standards i
I Reporting interpretations Committee (IFRIC)
(siC) interpretations and International Financial
Interpretations.
10. Prior period errors includes
misstate financial statements.
11. Anentity can change its accounting pol
IFRS.
mathematical mistakes, omissions, and intentional fraud to
licies if, and only if, such change is required by another
| application
it for a change in accounting policy resulting from the it
in an accounting policy and is not
jod the
of an IFRS retrospectively.
lied as a change i
a change in accounting estimate. :
in the profit or loss in the peri
hall be presented It
error was discovered and corrected;
ively from the period it was discovered
and future periods affected.