CAF-1 · Chapter 10 · Question 6 of 15
When an entity applies an accounting policy retrospectively, what additional requirement must it fulfill regarding the presentation of financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) It must present a third statement of financial position as at the beginning of the preceding period.
Explanation
An additional (third) statement of financial position as at the beginning of the preceding period is required when an entity applies an accounting policy retrospectively.
More IAS 8 Accounting Policies, Estimates and Errors MCQs
- Q8Which of the following events is NOT considered a change in accounting policy?
- Q9In the absence of a specifically applicable IFRS, management must use judgement to develop an accounting policy. Which of the following is…
- Q10Epsilon Ltd revalues its property from the cost model to the revaluation model for the first time. How is this change handled under IAS 8?
- Q11When a company finds it difficult to distinguish whether a change is a change in accounting policy or a change in accounting estimate, how…
- Q12Which of the following describes 'prospective application'?
