CAF-1 · Chapter 10 · Question 8 of 15
Which of the following events is NOT considered a change in accounting policy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Application of a new accounting policy for a transaction that did not occur previously.
Explanation
The application of a new accounting policy for transactions and events that did not occur previously, or were immaterial, is explicitly excluded from being classified as a change in accounting policy.
More IAS 8 Accounting Policies, Estimates and Errors MCQs
- 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'?
- 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?