ACCA FR · Chapter 1 · Question 6 of 10
Which of the following is a change in accounting estimate rather than a change in accounting policy under IAS 8?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Revising the estimated useful life of a fleet of delivery vehicles from 5 to 4 years
Explanation
A useful life is an estimate based on the latest available information, so revising it is a change in accounting estimate and is applied prospectively. Changing a cost formula, changing to comply with a standard's requirement and changing the measurement model for investment property all change the basis of measurement, so they are changes in accounting policy.
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