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Question 1: State whether each of the following events is a change of accounting policy, a change of accounting estimate or an error in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors or otherwise and briefly explain how the each change should be accounted for in the financial statements:
(a) Change from the use of Cost Model for a class of assets to the use of Revaluation Model.
(b) A change in the depreciation charged on equipment from the declining balance method to the straight-line method as a result of changes in the use of the equipment.
(c) A change in the classification of depreciation charges from Cost of Sales to Distribution costs.
Financial Statement Analysis and Preparation
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