AASB 101 Requires That Accounting Policy Changes Be Disclosed in a Note

question 9

Multiple Choice

AASB 101 requires that accounting policy changes be disclosed in a note to the financial statements. A business bought new equipment and thought it would have a six- year useful life. After two years, the business decided that the equipment would be useful for only three more years. This would be considered a:

• A)contingency.
• B)change in accounting policy.
• C)change in accounting estimate.
• D)recording error.

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