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CA Final Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors — practice questions — page 2

Explore 60 free Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors questions and exercises with answers

Showing questions 31–60 of 60.

When initial application of an Ind AS affects the current period, which item must be disclosed?Read the answer and worked solution →A voluntary policy change requires disclosing why it gives:Read the answer and worked solution →Are policy-change disclosures repeated in later periods?Read the answer and worked solution →For a new Ind AS issued but not yet effective and not applied, the entity discloses:Read the answer and worked solution →Which of these is cited as an item that may require an estimate?Read the answer and worked solution →The use of reasonable estimates in preparing financial statements:Read the answer and worked solution →A change in the measurement basis applied is treated as a change in:Read the answer and worked solution →If a policy change cannot readily be told apart from an estimate change, it is treated as:Read the answer and worked solution →A change in estimate affecting only the current period is recognised in:Read the answer and worked solution →An estimate change that alters an asset is recognised by adjusting its:Read the answer and worked solution →A revised estimate of the amount of bad debts affects the profit or loss of:Read the answer and worked solution →A revised useful life of a depreciable asset affects depreciation of:Read the answer and worked solution →For a change in accounting estimate with current or future effect, an entity discloses its:Read the answer and worked solution →If the future effect of an estimate change cannot practicably be estimated, the entity discloses:Read the answer and worked solution →Financial statements fail to comply with Ind AS if they contain material errors, or immaterial errors made:Read the answer and worked solution →Potential errors of the current period discovered in that period are corrected before:Read the answer and worked solution →Material prior period errors are corrected in the first statements approved for issue after:Read the answer and worked solution →Correcting a material error that occurred in a presented prior year involves restating:Read the answer and worked solution →An error predating the earliest period presented is corrected by restating:Read the answer and worked solution →In the year it is found, the correction of a prior period error is:Read the answer and worked solution →Material expenses of Rs 80,000 of last year were omitted. Charge to this year's profit?Read the answer and worked solution →A Rs 1,00,000 machine on 10-year straight line, nil residual. After 3 years, 2 years remain. Next year's depreciation?Read the answer and worked solution →Equipment bought at Rs 6,00,000 had 6 years of life, no scrap. After 2 years, 8 years remain. New yearly charge?Read the answer and worked solution →Rs 50,000 is due, Rs 30,000 provided. Now only Rs 10,000 is recoverable. Extra charge this year?Read the answer and worked solution →Applying a new policy to a prior period must not use what, in assuming past management intentions?Read the answer and worked solution →While correcting a sick leave liability of a prior year, a severe flu season in the next year is:Read the answer and worked solution →Retrospective application is impracticable for a prior period if its effects are:Read the answer and worked solution →Disclosure on correcting a prior period error must include:Read the answer and worked solution →Where Ind AS 33 applies, a prior period error correction is disclosed per line item and for:Read the answer and worked solution →Ind AS 8 uses the term balance sheet instead of which IAS 8 term?Read the answer and worked solution →

Worked practice questions

When initial application of an Ind AS affects the current period, which item must be disclosed?

  1. Number of employees
  2. Title of the Ind AS
  3. Auditor's remuneration
  4. Amount of dividends
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Correct answer: B. Title of the Ind AS

The first disclosure item for such a change is the title of the Ind AS that caused it.

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A voluntary policy change requires disclosing why it gives:

  1. higher reported profits
  2. simpler audit trails
  3. reliable, more relevant data
  4. lower overall tax outgo
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Correct answer: C. reliable, more relevant data

The entity must justify a voluntary change by explaining how the new policy yields reliable and more relevant information.

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Are policy-change disclosures repeated in later periods?

  1. Not required to repeat
  2. Repeated until audited
  3. Repeated for five years
  4. Repeated if profit changes
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Correct answer: A. Not required to repeat

Ind AS 8 states that financial statements of subsequent periods need not repeat these disclosures.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property