Which of the following is an example of a change in accounting policy?
A) A vote of the board of directors to change the method for depreciating a building.
B) A revised IFRS that allows companies to reflect the fair value of its buildings on the financial statements.
C) The controller discovers extends the useful life of computers from three years to four years.
D) Management's choice to follow US GAAP rather than IFRS for PPE.
Correct Answer:
Verified
Q1: Retrospective adjustment means:
A) Changes must be made
Q3: Which of the following statements is true
Q4: Changes in estimates are:
A) Recognized retrospectively.
B) Deferred
Q5: Prospective adjustment means:
A) Changes must be made
Q6: Changes in estimates are recognized prospectively by
A)
Q7: Errors in accounting entries result from all
Q8: Errors should be corrected
A) only when fraud
Q9: Corrections of prior period errors are
A) accounted
Q10: The impracticability criterion for exemption from changing
Q11: Accounting policy elections must be followed consistently
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