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