Table of Contents

Module 2: Accounting Changes and Error Corrections - Section 1.......................... 6

1.0 Introduction to IAS 8............................................................................................................................ 6

1.1 Objective........................................................................................................................................................ 6

1.2 Scope.............................................................................................................................................................. 6

1.3 Definitions..................................................................................................................................................... 6

2.0 Accounting Policies.............................................................................................................................. 8

2.1 Selection and application.......................................................................................................................... 8

2.2 Changes in accounting policies............................................................................................................... 9

2.3 Disclosures.................................................................................................................................................. 10

Module 2: Accounting Changes and Error Corrections - Section 2........................ 14

3.0 Accounting Estimates....................................................................................................................... 14

3.1 The use of estimates................................................................................................................................... 14

3.2 Changes in accounting estimates........................................................................................................... 14

3.3 Disclosures.................................................................................................................................................. 16

4.0 Accounting Errors.............................................................................................................................. 16

4.1 Prior period errors.................................................................................................................................... 16

4.2 Correcting prior period errors............................................................................................................... 16

4.3 Disclosures.................................................................................................................................................. 17

5.0 IFRS & U.S. GAAP Convergence......................................................................................................... 19

5.1 ASC 250 Accounting Changes and Error Corrections...................................................................... 19

5.2 IAS 8 & ASC 250: Similarities and differences................................................................................... 20

6.0 Module Summary.................................................................................................................................. 21

Review Answers.............................................................................................................................................. 26

Glossary.............................................................................................................................................................. 33

Final Examination............................................................................................................................................ 37

CPASelfstudy.com Course Evaluation............................................................................................ 41