Accounting policies - are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
Change in Accounting Policy
-required by an accounting standard
-the change will result in more relevant and faithfully represented info about the fs
Retrospective - prior periods; adjustment to the opening balance of retained earnings; beginning of the year of change
Accounting Estimate - is a normal recurring correction or adjustment of an asset or liability which is the natural result of the use of an estimate
-to be handled currently and prospectively; from the date of change in estimate
*If having a difficulty to distinguish a change; it is treated as a change in accounting estimate with appropriate disclosure
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Prior Period Errors - are omissions and misstatements in the FS for one or more periods arising from a failure to use or misuse of reliable info; shall be corrected retrospectively by adjusting the opening balances of retained earnings and affected assets and liabilities.
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STAI LEGGENDO
Accounting
CasualeThis book is filled with accounting lessons specially crafted for accounting students and aspiring accountants. Dive into the world of numbers and financial know-how as I guide you through essential concepts and practical insights. Whether you're ju...
