CAF-1 · Chapter 10 · Question 14 of 15
Which of the following details must be disclosed when a voluntary change in accounting policy is made?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The reasons why the new policy provides reliable and more relevant information.
Explanation
For a voluntary change in accounting policy, IAS 8 requires disclosure of the nature of the change and the reasons why the new policy provides reliable and more relevant information.
More IAS 8 Accounting Policies, Estimates and Errors MCQs
- Q1Under IAS 8, which of the following situations qualifies as a valid reason to voluntarily change an accounting policy?
- Q2How should an entity account for a change in the depreciation method of a machine from straight-line to reducing balance?
- Q3Sigma Ltd discovers a material error in its inventory valuation for the previous financial year. How must this be corrected under IAS 8?
- Q4If it is 'impracticable' to determine the period-specific effects of a change in accounting policy on comparative information, what should…
- Q5Which of the following is considered a 'change in accounting policy' rather than a 'change in estimate'?