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:

Ineffective

Describes actions or methods that do not produce the intended result or fail to achieve objectives.

Respond

To provide an answer or reply to a question or situation.

Positional Power

The power held by an individual due to their status or position within a structure or organization.

Relational Benefits

Relational benefits refer to the advantages gained from establishing and maintaining long-term relationships with others, often in a business or interpersonal context.