ACCT20002 Lecture Notes - Lecture 10: Disclose, Contingent Liability, Key Management

• School: University of Melbourne
• Department: Accounting
• Course: ACCT20002
• Professor: All

Document Summary

Aasb 108/ias 8: selecting and changing accounting policies. Substance over form: changes in accounting estimates, correction errors, extensive disclosure requires extensive disclosures when an entity changes its accounting policy. Disclosure issues: accounting policies: accounting policies are the speci c principles, bases, conventions, rules and practices applied by an entity in preparing and presenting nancial statements, considers: How accounts are prepared and what is disclosed: examples: Valuation of ncas (e. g. cost vs fair value) Consistency of accounting policies: an entity shall select and apply its accounting policies consistently for similar transactions. Changes in accounting policies: an entity shall change an accounting policy only if the change: is required by an aasb; or (a) (b) results in the fs providing reliable and more relevant information, disclose if changing: The nature of the change in accounting policy. The reasons why applying the change provides reliable and more relevant information.