• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App


How do you distinguish between a change in accounting estimate and change in accounting policy? What is the criteria to see?
in IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors by

1 Answer

0 votes
Change in accounting estimate is when the entity reviews the useful life of the asset, the change is prospective and change in accounting policy is when the entity changes the method used to measure an asset like form cost model to revaluation model per IAS 16, the change is retrospective meaning you should restate the prior periods and disclose the nature and amount of the change in the notes to the financial statements.

I hope you get it. :)
by Level 3 Member (5.7k points)