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Provide an example of an accounting estimate and explain how a change in your estimate could occur. What action does IAS 8 require when such a change occurs?

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Issue:

Miscellaneous

 

Written by:

Michael G

 

Date added:

June 15, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 296

 

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4839 times

 

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Essay content:

But because at times it is hard to distinguish between an accounting estimate and an accounting policy, the change is considered an accounting estimate. (IASB) The IAS 8 required that to recognized the change the change should be recognized prospectively by including it in the profit and loss in the period of the change if the change affects that period only...
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(IASB) The IAS 8 required that to recognized the change the change should be recognized prospectively by including it in the profit and loss in the period of the change if the change affects that period only. As with the example of bad debt it will affect the current period of the entity as current sales will be affected by the provision for bad debt...
displayed 300 characters

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