Question: Exercise 16.9 ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, ERRORS State whether the following changes should be accounted for and, if so, whether retrospectively or prospectively,

Exercise 16.9 ★ ★ ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, ERRORS State whether the following changes should be accounted for and, if so, whether retrospectively or prospectively, in accordance with IAS 8:

(a) A change in accounting policy made voluntarily.

(b) A change in accounting policy required by an accounting standard.

(c) A change in an accounting estimate.

(d) An immaterial error discovered in the current year, relating to a transaction recorded 2 years ago.

(e) A material error discovered in the current year, relating to a transaction recorded 2 years ago. Management determines that retrospective application would cause undue cost and effort.

(f) A change in accounting policy required by an accounting standard. Retrospective application of that standard would require assumptions about what management’s intent would have been in the relevant period(s).

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