Which of the following is a change in policy?
A)Inventory was sold below carrying amount even though the inventory had been previously written down to lower of cost and net realizable value.
B)A company changes from the cost model to the revaluation model of measuring the value of land.
C)Development costs were capitalized when only five of six criteria for capitalization had been satisfied.
D)The company miscalculated the weighted average number of ordinary shares outstanding because it used the wrong date for a share issuance.

Question

Quizplus · Accepted Answer

Changing from the cost model to the revaluation model for measuring the value of land represents a change in accounting policy. This involves a deliberate change in the basis of accounting for an item, not merely a correction of an error or a change in an accounting estimate.

Which of the Following Is a Change in Policy