Which one of these changes would be classified as ‘a change in accounting policy’ as determined by HKAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’? A Increased the allowance for irrecoverable receivables from 5% to 10% of outstanding debts B Changed the method of valuing inventory from FIFO to average cost C Changed the depreciation of plant and equipment from straight-line depreciation to reducing balance depreciation D Changed the useful economic life of its motor vehicles from six years to four years
Which one of these changes would be classified as ‘a change in accounting policy’ as determined by HKAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’? A Increased the allowance for irrecoverable receivables from 5% to 10% of outstanding debts B Changed the method of valuing inventory from FIFO to average cost C Changed the depreciation of plant and equipment from straight-line depreciation to reducing balance depreciation D Changed the useful economic life of its motor vehicles from six years to four years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
) Which one of these changes would be classified as ‘a change in accounting policy’ as determined
by HKAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’?
A Increased the allowance for irrecoverable receivables from 5% to 10% of outstanding debts
B Changed the method of valuing inventory from FIFO to average cost
C Changed the
reducing balance depreciation
D Changed the useful economic life of its motor vehicles from six years to four years
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education