PAS 2&PAS8

• Accounting policiesare the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
• A change in accounting estimateis an adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability.

Limit your answers to 3 sentences only for each question.

1. Compare and Contrast Accounting Policies and Accounting Estimates.

2. Differentiate Adjusting event from Non-adjusting events.

3. Why do you think PAS 2 requires that inventories be valued at Net Realizable Value?

Note: Avoid academic plagiarism as it will result in a grade of zero.