The Effect of a Revision of an Accounting Estimate Must

question 41

Multiple Choice

The effect of a revision of an accounting estimate must be recognised in profit and loss in which reporting periods?

• A) In the present, prior (by adjusting retained earnings) and future periods affected.
• B) In the present and future periods affected.
• C) In the present and prior reporting periods (by adjusting retained earnings).
• D) Revisions to accounting estimates should not be recognised in any period.
• E) None of the given answers.

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Definitions:

John Locke

An influential 17th-century English philosopher known for his theories on liberty, political government, and the mind as a "blank slate" or tabula rasa.

Global North

A term used to refer to the wealthier, industrialized countries located primarily in the Northern Hemisphere, which are often contrasted with the developing countries of the Global South.

Wealth

A measure of the value of all the assets of worth owned by a person, community, company, or country.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist who developed a critical analysis of capitalism and its societal impacts.