Skip to content

CMA Final · Corporate Financial Reporting · Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)

Under Ind AS 8, how are accounting estimates defined?

Accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty. The description of principles, bases, conventions, rules and practices defines accounting policies, not estimates, so the two terms must be kept distinct when applying Ind AS 8.

  1. ASpecific principles, bases, conventions, rules and practices applied in preparing financial statements
  2. BMonetary amounts in financial statements that are subject to measurement uncertaintyCorrect
  3. COmissions or misstatements arising from failure to use reliable information available when statements were approved
  4. DAmounts that have been approved by the board of directors for inclusion in the financial statements

Explanation

Ind AS 8 defines accounting estimates as monetary amounts in financial statements subject to measurement uncertainty. The first option is the definition of accounting policies, a common confusion. The other options are not Ind AS 8 definitions of estimates.

Did you get it right without looking?

One question tells you little. A timed set on Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8) shows your real accuracy, how long you take and where you lose marks.

Practise Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)Free diagnostic mock

More Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8) questions