Changes in Estimates – NBC Institute

FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the basis of selecting accounting policies and distinguish between changes in accounting policies and estimates with examples.

Question

As one of the accountants of Oluwaseun Plc, a company that has migrated to IFRS, you are aware that IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” contains guidance on the use of accounting policies and accounting estimates.

Required:

Explain the basis on which the management of an entity, such as Oluwaseun Plc, must select its accounting policies, and distinguish, with an example, between changes in accounting policies and changes in accounting estimates.

Answer

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Tags: Accounting Policies, Changes in Estimates, Financial Reporting, IAS 8
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2016

FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain accounting policies and estimates, and distinguish between changes in accounting policies and accounting estimates.

Question

The aim of IAS 8 – Accounting Policies, Changes in Accounting Estimates, and Errors is to enhance the comparability of an entity’s financial statements with previous periods and with the financial statements of other entities.

Required:
Explain the terms, “accounting policies” and “accounting estimates.” (3 Marks)

b. In an in-house training for newly recruited trainee accountants in your organization, a disagreement arose on the distinction between change in accounting policies and change in accounting estimates. Consequent upon the above, the finance director requested you as the head of the accounting department to make a presentation on the subject matter.

Required:
Write a memo addressed to the finance director distinguishing changes in accounting policies and changes in accounting estimates, highlighting also the accounting treatment of the changes in accounting estimates. (8 Marks)

c. An extract from the non-current assets register of Eze Nigeria Limited at July 1, 2019, shows the following details:

Additional information includes details of impairment, revaluation, depreciation, and amortization.

Required:
Prepare, with comparative figures, statement of financial position extracts of Eze Nigeria Limited as at June 30, 2020. Show relevant notes for PPE and intangible assets. (9 Marks)

Answer

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Tags: Accounting estimates, Accounting Policies, Changes in Estimates
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2022

FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications

This question covers the procedures for selecting and applying accounting policies in accordance with IAS 8.

Question

IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors is applied in selecting and applying accounting policies, accounting for changes in estimates, and reflecting corrections of prior period errors.

Required:
Describe the procedures an entity shall apply in selecting an accounting policy.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Changes in Estimates, IAS 8, Prior Period Errors
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: NOV 2021

PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework

Discuss the guiding principles for formulating accounting policies, conditions for changes, and treatment of changes under IPSAS 3.

Question

b) With reference to IPSAS 3: Accounting Policies, Changes in Estimates and Errors:

i) Explain the guiding principles for formulating accounting policy. (2 marks)

ii) The conditions that mandate a change in accounting policy. (2 marks)

iii) The treatment of changes in accounting policy required by IPSAS 3. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Changes in Estimates, Errors, IPSAS 3, Public Sector
Level: Level 2

Topic: General purpose financial reporting framework
Series: NOV 2019

FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the basis of selecting accounting policies and distinguish between changes in accounting policies and estimates with examples.

Question

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Changes in Estimates, Financial Reporting, IAS 8
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2016

FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain accounting policies and estimates, and distinguish between changes in accounting policies and accounting estimates.

Question

Required:
Explain the terms, “accounting policies” and “accounting estimates.” (3 Marks)

c. An extract from the non-current assets register of Eze Nigeria Limited at July 1, 2019, shows the following details:

Additional information includes details of impairment, revaluation, depreciation, and amortization.

Required:
Prepare, with comparative figures, statement of financial position extracts of Eze Nigeria Limited as at June 30, 2020. Show relevant notes for PPE and intangible assets. (9 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting estimates, Accounting Policies, Changes in Estimates
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2022

FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications

This question covers the procedures for selecting and applying accounting policies in accordance with IAS 8.

Question

Required:
Describe the procedures an entity shall apply in selecting an accounting policy.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Changes in Estimates, IAS 8, Prior Period Errors
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: NOV 2021

PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework

Discuss the guiding principles for formulating accounting policies, conditions for changes, and treatment of changes under IPSAS 3.

Question

b) With reference to IPSAS 3: Accounting Policies, Changes in Estimates and Errors:

i) Explain the guiding principles for formulating accounting policy. (2 marks)

ii) The conditions that mandate a change in accounting policy. (2 marks)

iii) The treatment of changes in accounting policy required by IPSAS 3. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Changes in Estimates, Errors, IPSAS 3, Public Sector
Level: Level 2

Topic: General purpose financial reporting framework
Series: NOV 2019

Question Tag: Changes in Estimates

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FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the basis of selecting accounting policies and distinguish between changes in accounting policies and estimates with examples.

FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain accounting policies and estimates, and distinguish between changes in accounting policies and accounting estimates.

FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications

This question covers the procedures for selecting and applying accounting policies in accordance with IAS 8.

PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework

Discuss the guiding principles for formulating accounting policies, conditions for changes, and treatment of changes under IPSAS 3.

FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the basis of selecting accounting policies and distinguish between changes in accounting policies and estimates with examples.

FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain accounting policies and estimates, and distinguish between changes in accounting policies and accounting estimates.

FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications

This question covers the procedures for selecting and applying accounting policies in accordance with IAS 8.

PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework

Discuss the guiding principles for formulating accounting policies, conditions for changes, and treatment of changes under IPSAS 3.

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FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the basis of selecting accounting policies and distinguish between changes in accounting policies and estimates with examples.

You're reporting an error for "FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain accounting policies and estimates, and distinguish between changes in accounting policies and accounting estimates.

You're reporting an error for "FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications

This question covers the procedures for selecting and applying accounting policies in accordance with IAS 8.

You're reporting an error for "FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications"

PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework

Discuss the guiding principles for formulating accounting policies, conditions for changes, and treatment of changes under IPSAS 3.

You're reporting an error for "PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework"

FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the basis of selecting accounting policies and distinguish between changes in accounting policies and estimates with examples.

You're reporting an error for "FR – May 2016 – L2 – Q5a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain accounting policies and estimates, and distinguish between changes in accounting policies and accounting estimates.

You're reporting an error for "FR – May 2022 – L2 – SB – Q2 – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications

This question covers the procedures for selecting and applying accounting policies in accordance with IAS 8.

You're reporting an error for "FR – Nov 2021 – L2 – Q2d – Financial Reporting Standards and Their Applications"

PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework

Discuss the guiding principles for formulating accounting policies, conditions for changes, and treatment of changes under IPSAS 3.

You're reporting an error for "PSAF – Nov 2019 – L2 – Q2b -General purpose financial reporting framework"

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