Podcast
Questions and Answers
What triggers a change of accounting policies according to the given text?
What triggers a change of accounting policies according to the given text?
- A change in the entity's financial year
- A new accounting standard (correct)
- A change in the entity's logo design
- A change in management personnel
When might an error arise in the measurement of financial statements according to the given text?
When might an error arise in the measurement of financial statements according to the given text?
- When preparing the external audit report
- When reviewing the financial statements
- When selecting accounting policies
- When estimating the amounts for line items (correct)
Who is responsible for applying judgements in the selection of accounting policies and estimation of amounts according to the given text?
Who is responsible for applying judgements in the selection of accounting policies and estimation of amounts according to the given text?
- External auditors
- Regulatory authorities
- Investors
- Management of the entity (correct)
What is the role of an entity in selecting accounting policies and estimating amounts for financial statements?
What is the role of an entity in selecting accounting policies and estimating amounts for financial statements?
When is a change of accounting policies required according to the text?
When is a change of accounting policies required according to the text?
What does MFRS108 require an entity to do regarding the application of accounting policies?
What does MFRS108 require an entity to do regarding the application of accounting policies?
What is one of the desirable attributes in the context of financial statements to meet the comparability objective?
What is one of the desirable attributes in the context of financial statements to meet the comparability objective?
When might a change in measurement give rise to an error in financial statements?
When might a change in measurement give rise to an error in financial statements?
What is the primary reason for a mandatory change in accounting policy?
What is the primary reason for a mandatory change in accounting policy?
Which of the following is NOT considered a change in accounting policies?
Which of the following is NOT considered a change in accounting policies?
In which way can the effect of a change in accounting policy be incorporated into the financial statements by treating as if the new policy had always been in use?
In which way can the effect of a change in accounting policy be incorporated into the financial statements by treating as if the new policy had always been in use?
What is the basis for a discretionary change in accounting policy?
What is the basis for a discretionary change in accounting policy?
How does a voluntary change in accounting policy differ from a mandatory change?
How does a voluntary change in accounting policy differ from a mandatory change?
