Solutions to this question should not be more that 20 sentences) -

a. Distinguish between accounting policies and accounting estimates.

b. Explain how a change in an accounting policy should be accounted for.

c. Explain how a change in an accounting estimate should be accounted for.

d. Explain how an entity should select its accounting policy in relation to an item if there is no applicable international standard or IFRIC Interpretation.

e. In what circumstances may an entity change one of its accounting policies? f. List the disclosures which must be made if an accounting policy is changed. g. Explain what is meant by a "material prior period error" and explain how such an error should be corrected. h. List the disclosures required when a material prior period error is corrected.