Change in accounting estimate means: a) Differences arising between certain parameters re-estimated - (d) Description: Estimates have to be made for certain items that have not occurred on the balance sheet date and therefore they cannot be measured using valuation principles. In such a situation a reasonable estimate based on the existing situation and past experience is made. Such estimate are made in connection with the computation of depreciation, amortisation and impairment losses as well as accruals, provisions and employee benefit obligations. The process of estimation involves judgement based on the latest information available. An estimate may require revision if any change occurs regarding circumstances on which the estimate was based, or as a result of new information, more experience or subsequent developments. Change in accounting estimate means difference arises between certain parameters estimated earlier and re- estimated during the current period or actual result achieved during the current period. - Fundamentals of Accounting Interview Questions and Answers

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Question: Change in accounting estimate means:
a) Differences arising between certain parameters re-estimated during the current period and actual results achieved during the current period
b) Differences arising between certain parameters estimated earlier and re-estimated during the current period
c) Differences arising between certain parameters estimated earlier and actual results achieved during the current period
d) Both (b) and (c)

Answer: (d)
Description: Estimates have to be made for certain items that have not occurred on the balance sheet date and therefore they cannot be measured using valuation principles. In such a situation a reasonable estimate based on the existing situation and past experience is made. Such estimate are made in connection with the computation of depreciation, amortisation and impairment losses as well as accruals, provisions and employee benefit obligations. The process of estimation involves judgement based on the latest information available. An estimate may require revision if any change occurs regarding circumstances on which the estimate was based, or as a result of new information, more experience or subsequent developments. Change in accounting estimate means difference arises between certain parameters estimated earlier and re- estimated during the current period or actual result achieved during the current period.

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Question: Change in accounting estimate means:
a) Differences arising between certain parameters re-estimated during the current period and actual results achieved during the current period
b) Differences arising between certain parameters estimated earlier and re-estimated during the current period
c) Differences arising between certain parameters estimated earlier and actual results achieved during the current period
d) Both (b) and (c)

Answer:

(d)
Description: Estimates have to be made for certain items that have not occurred on the balance sheet date and therefore they cannot be measured using valuation principles. In such a situation a reasonable estimate based on the existing situation and past experience is made. Such estimate are made in connection with the computation of depreciation, amortisation and impairment losses as well as accruals, provisions and employee benefit obligations. The process of estimation involves judgement based on the latest information available. An estimate may require revision if any change occurs regarding circumstances on which the estimate was based, or as a result of new information, more experience or subsequent developments. Change in accounting estimate means difference arises between certain parameters estimated earlier and re- estimated during the current period or actual result achieved during the current period. Source: CoolInterview.com

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