CAF-1 · Chapter 10 · Question 10 of 15
Epsilon Ltd revalues its property from the cost model to the revaluation model for the first time. How is this change handled under IAS 8?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is dealt with as a revaluation in accordance with IAS 16, not as a retrospective policy change under IAS 8.
Explanation
The initial application of a policy to revalue assets (from cost model) is an exception and is dealt with in accordance with IAS 16, not retrospectively under IAS 8.
More IAS 8 Accounting Policies, Estimates and Errors MCQs
- Q12Which of the following describes 'prospective application'?
- Q13If a change in accounting estimate gives rise to changes in assets, liabilities, or equity, when should this adjustment be recognized?
- Q14Which of the following details must be disclosed when a voluntary change in accounting policy is made?
- Q15During the current year, a company discovers that it accidentally completely omitted a material sales invoice from the previous year's…
- Q1Under IAS 8, which of the following situations qualifies as a valid reason to voluntarily change an accounting policy?