The Effect of a Change in an Estimate Is to Be

question 27

Multiple Choice

The effect of a change in an estimate is to be recognised in the statement of comprehensive income in which of the following:

• A) the period of the change, if the change affects that period only
• B) the period of the change, if the change affects other periods
• C) the period of the change and future periods, if the change affects either
• D) only the future periods,

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Definitions:

Ordinary Annuity

An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time.

Deferred Annuity

An insurance product that provides for the accumulation of capital on a tax-deferred basis, with payouts commencing at a future date, typically used as a retirement planning tool.

Ordinary Annuity

A series of equal payments made at regular intervals, with the typical assumption that each payment occurs at the end of a period.

Deferred Annuity

An insurance product that provides future payments to the holder, typically starting at retirement, after an initial investment period.