Cima F1 Exam Question No 20

Question No 20:

According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, which ONE of the following is a change in accounting policy?

A. The depreciation method of vehicles being changed from straight line to reducing balance.
B. The provision for warranty claims being recalculated using a different method.
C. Recognising a provision for a legal claim which had been disclosed as a contingent liability in the previous year’s financial statements.
D. Presenting depreciation in cost of sales which had previously been presented in administrative expenses.

Answer: D