ACCO 310 Lecture Notes - Lecture 21: Accrual, Security Deposit, Income Statement
7 Feb 2016
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Ias 8 accounting policies, changes in accounting estimates and errors. Adjustment to the carrying amount of an asset or liability or the amount of an asset"s periodic consumption. Adjustment based on a change in circumstances on which a previous estimate was based or as the result of new information, more experience or subsequent developments. E. g. , change in the estimate of useful life, change in the estimate of uncollectible amount of accounts receivable: correction of a prior period error. E. g. , failure to recognize depreciation on a group of capital assets that were used in operations for a specific prior period: change in accounting policy. Could be specifically required by gaap, or. Permitted/allowed as long as consistent with the general principle of the corresponding standard and the result of professional judgment (i. e. , takes into account the intention of the standard, the. Apply accounting policies consistently for similar transactions (consistency principle from. Requirements for changes in accounting policy to be acceptable:
