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4 Cards in this Set
- Front
- Back
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Accounting policy |
CR 'Specific principles, bases, rules & practices applies by entity in preparing & presenting FS's' -e.g an entity may choose between the COSt model or REValuation model for measuring PPE, the choice is one of the entities acc policies. -also depn |
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Accounting estimates |
Judgement applied when measuring items that cant be measured with precision, which lead to the CA of an item in FS's -e.g estimates of UL of non current asset, or allowance for doubtful debts |
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Prior period errors |
Omission or mistatement occuring in FS's for a prior period |
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Why are acc policies desirable for users |
-understand basis on which values in FS have been prepared (e.g measurement bases, FV,HCA?) -confirms that appropriate acc pols have been applied -enables valid comparisons to be made over time & between companies -IAS8 requires consistent selection & application of accounting policies for similar transactions |
