Thursday, 10 September 2015

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?

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

Answer: D

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