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Why is retrospective treatment of change in accounting

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Reference no: EM132696704

Problem 1: Why is retrospective treatment of change in accounting estimate prohibited?

a. A change in accounting estimate is a normal recurring correction or adjustment.

b. The retrospective treatment is not allowed.

c. Retrospective treatment of change in accounting estimate is required by IFRS.

d. IFRS is silent on the issue.

Problem 2: Which is required for a change from sum of years' digits to straight line depreciation?

a. Reported in the statement of retained earnings

b. Retrospective restatement

c. Recomputation of depreciation for current and future years

d. All of these are required.

Reference no: EM132696704

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