Preparation of the financial statements

Explain how an error can occur in the preparation of the financial statements. Give an example.  If an error in preparing a set of financial statements were discovered, how would it be corrected in accordance with AASB 108 ‘Accounting Policies, Changes in Accounting Estimates and Errors’?

Briefly describe the treatment of a voluntary change in accounting policy required by AASB 108

‘Accounting Policies, Changes in Accounting Estimates and Errors’. Does this differ from a change that is required by an Australian accounting standard that contains no transitional provisions? What is a change in an accounting estimate? Give an example.

Which of the following is NOT an example of a trust-building behavior?

A. Withholding deserved recognition at times when you are feeling underrecognized.

B. Communicating anticipated slippage as soon as you suspect it.

C. Sharing credit generously.

D. Airing concerns with stakeholders when you're unsure about committing resources.

Solution: