CAF-1 · Chapter 10 · Question 1 of 15
Under IAS 8, which of the following situations qualifies as a valid reason to voluntarily change an accounting policy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The change results in the financial statements providing reliable and more relevant information.
Explanation
An entity shall change an accounting policy voluntarily only if the change results in the financial statements providing reliable and more relevant information about the effects of transactions.
More IAS 8 Accounting Policies, Estimates and Errors MCQs
- 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'?
- Q6When an entity applies an accounting policy retrospectively, what additional requirement must it fulfill regarding the presentation of…
- Q7Theta Corp applies an IFRS for the first time, and the standard contains specific transitional provisions. How should Theta apply this new…