Figure 7.18 shows a liquid-level system in which two tanks have cross-sectional areas A1 and A2, respectively. The volume flow rate into tank 1 is qi. A pump is connected to the bottom….
Explain what is meant by ‘retrospective application’ of an accounting policy
1. Explain what is meant by ‘retrospective application’ of an accounting policy. When does AASB 108 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ require
retrospective application of an accounting policy? Are there any exceptions?
2.What is the difference between a ‘retrospective application’ and a ‘retrospective
restatement’? 3. Changes in accounting estimates and errors relate to past reporting periods and as such they are often called ‘prior-period items’. What are the two general ways in which
prior-period items could be treated? Outline the arguments for and against each approach.