Accounting Changes and Error Corrections

three and two

A company's first IFRS-based financial statements must include at least

preferable

A voluntary accounting change can be made only if

principle and estimate

Accounting changes include changes in accounting

change

An accounting error occurs when a transaction is recorded incorrect

prior, period, adjustment

An addition to or reduction of the beginning balance of retained earnings is referred to as a

principles

The prospective approach is used for changes in accounting estimate and for change

estimate

When it is impossible to distinguish between a change in principle and a change in estimate

prospective

When it is impracticable to measure the period-specific effects of a change in accounting

prospective

a change in accounting estimate is accounted for using the

income

and are not discovered until a later period present the most challenges

retrospective

approach, the comparative financial statements are made to appear as

prospective

approach, the effects of a change are reflected in the financial statement

retrospective

first-time adoption of IFRS generally requires a

error

occurs when a transaction in recorded incorrectly, whereas an