Exam 18: Accounting Policies and Other Disclosures

Canetoads Ltd has discovered that the estimated useful life made on a material depreciable asset was incorrect due to a change in the way the asset was being used. The correct accounting treatment of this event is to:

Which of the following does not involve the use of estimates by an entity in preparing its financial statements?

Which of the following is not required to be disclosed in an entity's accounting policy note?

Prior to the finalisation of the financial statements for the year ended 30 June 2014, a company experienced a number of material events, including: In respect of the events listed above, it will be necessary to adjust the financial statements, by way of general journal entries, for:

The correction of a material error that occurred in a previous period must be accounted for by:

Correcting the recognition, measurement and disclosure of amounts of financial statement elements as if a prior period error had never occurred is known as:

The financial statements of an entity are authorised for issue on:

Which of the following statements is correct?

Events occurring after the end of the reporting period which provide evidence of conditions that existed at the end of the reporting period are known as:

Errors can occur for which of the following reasons?

In determining whether an item is material, consideration must be given to:

According to AASB 108, omissions or misstatements are material if they:

If an accounting policy change is voluntary, which of the following disclosures is required by AASB 108/IAS 8?

A company's workforce went on strike for an indefinite period commencing on 5 August 2014. The strike was expected to cause severe financial conditions for the company. The financial statements for the year ended 30 June 2014 were expected to be finalised by 7 August 2014. In accordance with AASB 110 Events after the Reporting Period, the appropriate treatment regarding this event is: