IAS 8 looks to allow retrospective application of new accounting policies without restating prior financials

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. How should a change in accounting policy be accounted for?

  2. How should a change in accounting estimate be accounted for?

  3. Which of the following represents acceptable alternatives for how IFRS 16 Leases can be applied? Statement 1 -Retrospectively, with comparative financial statements restated, or Statement 2 - Retrospectively, with an adjustment to opening retained earnings but no need to restate prior year financial statements?

  4. Which of the following represents acceptable alternatives for how IFRS 15 Revenue from Contracts with Customers can be applied? Statement 1 - Retrospectively, with comparative financial statements restated, or Statement 2 - Retrospectively, with an adjustment to opening retained earnings but no need to restate prior year financial statements?

  5. Which of the following changes in accounting policy would not be accounted for retrospectively?

  6. Which of these was not a reason the IASB believes IFRS 9 is appropriate?

  7. Which of the following terms is not included in the proposed definition of an accounting standard?

  8. Which, if any, of the following statements is correct? Statement 1 - An entity cannot change from applying straight line depreciation to reducing balance depreciation, or Statement 2 - A change in where depreciation is charged in the statement of profit or loss is a change in accounting estimate?

  9. Which of the following is not a proposed change in relation to IAS 8?

  10. Which, if any, of the following statements is/are correct? Statement 1 - Many respondents believe that further illustrative examples are required in IAS 8, or Statement 2 - There is also a proposed changed to an auditing standard around accounting estimates?