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

question 24

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

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Grand Strategy

A comprehensive, long-term plan of essential actions by which an organization seeks to achieve its major objectives.

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A concise declaration describing the aspirations and ethics of an enterprise, organization, or person.

General Explanation

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