Bellow are elements in the financial statements on which the director of ABC Building Limited require advice: • In 2016, ABC Building Limited acquired several properties as investment properties. Since ABC has not adopted accounting policy in accounting for property as investment properties before, the financial director considered such adoption is change in accounting policy. ABC Building Limited has no investment property before 2016. • In 2018, ABC Building Limited proposed to change to the cost model instead of fair value model in accounting for its investment property in accordance with PSAK 13. Its financial director considered whether ABC could make such changes and, if change could be made, how ABC should account for the changes • In 2020, ABC Building limited decided to make a change in estimate as to the duration of depreciation of its building, increasing it from 20 to 30 years. Please Discuss how the above items should be dealt with in the financial statements of ABC Building Limited based on IAS 8
Bellow are elements in the financial statements on which the director of ABC Building Limited require advice:
• In 2016, ABC Building Limited acquired several properties as investment properties. Since ABC has not adopted accounting policy in accounting for property as investment properties before, the financial director considered such adoption is change in accounting policy. ABC Building Limited has no investment property before 2016.
• In 2018, ABC Building Limited proposed to change to the cost model instead of fair value model in accounting for its investment property in accordance with PSAK 13. Its financial director considered whether ABC could make such changes and, if change could be made, how ABC should account for the changes
• In 2020, ABC Building limited decided to make a change in estimate as to the duration of
Please Discuss how the above items should be dealt with in the financial statements of ABC Building Limited based on IAS 8
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