The Effect of a Revision of an Accounting Estimate Must

question 59

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) not recognised in any period

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Definitions:

Psychological Safety

A belief or sense within a group or organization that one can speak up, offer ideas, and ask questions without fear of punishment or ridicule.

Employee Involvement

The practice of involving staff in the decision-making processes of an organization to improve commitment, productivity, and job satisfaction.

Polarization

The process by which the differences between two opposing sides or viewpoints become more extreme, leading to a greater division within a group or society.

Theoretical Perspectives

Various frameworks or models that scholars use to understand, explain, and analyze phenomena within a particular field of study.