Prospective recognition of an estimate change affects:
Aopening retained earnings
Ball the prior periods
Ccurrent and future periods
Dthe earliest period shown
Answer & Solution
Correct answer: C. current and future periods
Prospective recognition books the effect in the period of change and any later periods that the change touches.
Keep practising Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors
Browse all Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors questions for CA Final, or explore more Financialreporting topics.
Related questions
Ind AS 8 uses the term balance sheet instead of which IAS 8 term?Where Ind AS 33 applies, a prior period error correction is disclosed per line item and foDisclosure on correcting a prior period error must include:Retrospective application is impracticable for a prior period if its effects are:While correcting a sick leave liability of a prior year, a severe flu season in the next yApplying a new policy to a prior period must not use what, in assuming past management intRs 50,000 is due, Rs 30,000 provided. Now only Rs 10,000 is recoverable. Extra charge thisEquipment bought at Rs 6,00,000 had 6 years of life, no scrap. After 2 years, 8 years rema