FSA Deck 5 – Non-Recurring Items and Acc

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Question

How is a change in accounting principle treated compared with a change in accounting estimate?

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Answer

Principle changes are retrospective; estimate changes are prospective.

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Question

If a company changes an accounting estimate, are prior-period statements restated?

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Answer

No, estimate changes are applied prospectively.

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Question

How should unusual or infrequent items be presented under IFRS and US GAAP?

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Answer

Within continuing operations, but separately disclosed.

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