If an Accounting Policy Change Is Voluntary,which of the Following

question 33

Multiple Choice

If an accounting policy change is voluntary,which of the following disclosures is required by AASB 108?

• A)The nature of the change.
• B)The reasons that applying the new accounting policy provides reliable and more relevant information.
• C)The amount of the adjustment relating to periods prior to those presented to the extent practicable.
• D)All of the above.

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Definitions:

Principal-Employer

The party in a contractual relationship who has the right to control the work of the employee or agent and is responsible for their actions.

Agent-Employee

An individual who performs tasks on behalf of another, the principal, in an employment context, with both agency and employment law aspects governing the relationship.

European Union Regulations

Laws that are directly applicable and binding in all member states of the European Union without the need for individual countries to enact additional legislation.

Agency Relationship Law

Agency Relationship Law governs the legal relationship formed between two parties when one, known as the agent, is authorized to act on behalf of the other, known as the principal.