MULTIPLE CHOICE QUESTION:
1. Which of the following is false?
a. GAAP and IFRS have the same absolute standard regarding the reporting of error corrections in previously issued financial statements.
b. The accounting for changes in estimates is similar between GAAP and IFRS.
c. Under IFRS, the impracticality exception applies both to changes in accounting principles and to the correction of errors.
d. GAAP has detailed guidance on the accounting and reporting of indirect effects; IFRS does not.
2. Which of the following is not classified as an accounting change by IFRS?
a. Change in accounting policy.
b. Change in accounting estimate.
c. Errors in financial statements.
d. None of the above.
3. IFRS requires companies to use which method for reporting changes in accounting policies?
a. Cumulative effect approach.
b. Retrospective approach.
c. Prospective approach.
d. Averaging approach.