Which of the Following Is Not Correct Regarding the Provisions

question 21

Multiple Choice

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

• A) IAS No.8 requires that results from prior periods be presented for all changes in accounting principles.
• B) IAS No.8 allows a change in accounting principle to be accounted for by reflecting the cumulative effect of the change in the income of the current period without restating prior-period results.
• C) Under IAS No.8,the recommended approach for a change in accounting principle is that results from prior periods should be restated.
• D) IAS No.8 requires a change in accounting estimate to be reflected in the current and future periods.

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Definitions:

Conformity

Adapting one's behaviors, beliefs, and attitudes to conform to the standards, policies, or expectations set by a group or the wider society.

Asch

Refers to Solomon Asch, a psychologist best known for his research on conformity, demonstrating that individuals would conform to the group consensus even when the group view was clearly incorrect.

Group Size

The number of members constituting a group, which can influence the group's dynamics and functioning.

Confederates

Individuals who are part of a study's design but pretend to be participants, aiding in creating specific conditions for the actual participants' reactions.