alleryStart learning →If a change cannot be told apart as policy or estimate, it is treated as
AA change in policy
BA change in estimate
CA prior period item
DAn extraordinary item
Answer & Solution
Correct answer: B. A change in estimate
AS 5 resolves the doubt by treating the change as an estimate change, with appropriate disclosure.
Keep practising AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
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