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MC Question 7

Which of the following would be a change in accounting policy in accordance with IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors
?

A

Adjusting the financial statements of a subsidiary prior to consolidation as its accounting policies differ from those of its parent

B

A change in reporting depreciation charges as cost of sales rather than as administrative expenses

C

Depreciation charged on reducing balance method rather than straight line

D

Reducing the value of inventory from cost to net realisable value due to a valid adjusting event after the reporting period