CAF-1 · Chapter 10 · Question 12 of 15
Which of the following describes 'prospective application'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Applying the new accounting policy to transactions occurring after the date of the change.
Explanation
Prospective application means applying the new accounting policy or estimate only to transactions and events occurring after the date of the change, without altering past records.
More IAS 8 Accounting Policies, Estimates and Errors MCQs
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