Yakub02
Banned
: Change in accounting estimate
A change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities.
Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors
A change in accounting estimate may be needed if changes occur in the circumstances on which the estimate was based, or if new information becomes available.
A change in estimate is not the result of discovering an error in the way an item has been accounted for in the past and it is not a correction of an error.
IAS 8 requires a change in an accounting policy to be accounted for retrospectively whereas a change in an accounting estimate is normally recognised from the current period.
The effect of a change in accounting estimate should be recognised prospectively, by including it: in profit or loss for the period in which the change is made, if the change affects that period only; or in profit or loss for the period of change and future periods, if the change affects both
A change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities.
Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors
A change in accounting estimate may be needed if changes occur in the circumstances on which the estimate was based, or if new information becomes available.
A change in estimate is not the result of discovering an error in the way an item has been accounted for in the past and it is not a correction of an error.
IAS 8 requires a change in an accounting policy to be accounted for retrospectively whereas a change in an accounting estimate is normally recognised from the current period.
The effect of a change in accounting estimate should be recognised prospectively, by including it: in profit or loss for the period in which the change is made, if the change affects that period only; or in profit or loss for the period of change and future periods, if the change affects both
