CAF-1 · Chapter 10 · Question 13 of 15
If a change in accounting estimate gives rise to changes in assets, liabilities, or equity, when should this adjustment be recognized?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) By adjusting the carrying amount in the period of the change.
Explanation
To the extent a change in an accounting estimate affects assets, liabilities, or equity, it shall be recognized by adjusting the carrying amount of the related item in the period of the change.
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