Analyze each case and choose a letter code under each category (type and approach) to indicate the preferable accounting for each case (items b to f) Assume IFRS Type Approach P Policy RWR Retrospective with restatement E Estimate PNR Prospective with no restatement AE Accounting error Changed the plant assets residual value E, PNR Example Switched from FIFO to average cost to conform to parent company preferences Opening balances for the current and previous two years can be reconstructed Discovered that a $400,000 acquisition of machinery two years ago had been debited to the land account Wrote off development cost accumulated and capitalized in two previous years due to serious doubts about the projects viability Changed from an unacceptable accounting policy to an acceptable accounting policy

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Question: Analyze each case and choose a letter code under each category (type and approach) to indicate the preferable accounting for each case (items b to

Analyze each case and choose a letter code under each category (type and approach) to indicate the preferable accounting for each case (items b to f). Assume IFRS.

Type	Approach
P = Policy	RWR = Retrospective with restatement
E = Estimate	PNR = Prospective with no restatement
AE = Accounting error

Changed the plant assets residual value. E, PNR [Example]
Switched from FIFO to average cost to conform to parent company preferences. Opening balances for the current and previous two years can be reconstructed.
Discovered that a $400,000 acquisition of machinery two years ago had been debited to the land account.
Wrote off development cost accumulated and capitalized in two previous years due to serious doubts about the projects viability.
Changed from an unacceptable accounting policy to an acceptable accounting policy.

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