Which of the Following Is Not Correct Regarding the Provisions

question 58

Multiple Choice

Which of the following is not correct regarding the provisions of IAS No.8 on accounting changes and error corrections?

• A) A change in accounting estimate is reflected in the current and future periods.
• B) A change in depreciation method (such as from an accelerated method to the straight-line method)is classified as a change in estimate.
• C) A change in depreciation method (such as from accelerated method to the straight-line method)is classified as a change in accounting principle.
• D) IAS No.8 generally reflects a preference for restating prior results to improve comparability of financial statements.

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Definitions:

Animal Magnetism

An outdated term that referred to a naturalistic healing power or force, postulated by Franz Mesmer, thought to reside within certain individuals.

Sakel

A reference to Manfred Sakel, a psychiatrist known for introducing insulin coma therapy for psychiatric purposes in the 1930s.

Insulin

A hormone produced by the pancreas that regulates glucose levels in the blood, crucial for managing diabetes.

Schizophrenia

A complex, chronic mental health disorder marked by distorted thinking, perceptions, emotions, language, sense of self, and behavior.