历史成本和公允价值对比(英文).docVIP

1.The disclosure –oriented accounting standards for financial report include AASB108, AASB110, and AASB1031. 2.AASB108 changes in Accounting Policies, Changes in Accounting Estimates Errors ①Accounting policies are the specific principles, bases or rules adopted by a company in preparing and presenting its financial reports.AASB108 paragraph 13 require accounting policies to be applied in a manner that ensures that financial information is comparable. However, if a change in accounting policies will provide more relevant or more reliable information, the company should make the change. Policies can only be changed in the following circumstances: the change is required by a standard and The change will provide reliable and more relevant information. Thus ,unless a change will result in improve financial reporting ,the same accounting policies should be used each year. retrospective restatement will be applied in new policy as if it had always been applied . An entity must adjust the opening balance of each affected component of equity for the earliest prior period presented. ②Accounting estimates are regularly changed as new information arises. Changes in accounting estimates require prospective application.For example, The useful life assessment of non-current assets change due to technological advancements – i.e. the actual useful life is shorter than the original estimate of useful life. In such cases, the depreciation expense recognised in prior periods is not changed, but the remaining carrying amount of the asset is written off over its remaining (shorter) useful life. ③ Errors may arise as a result of an mathematical error, misinterpretation of information, mistakes in applying accounting policies or fraud Discovered errors (where material) must be corrected retrospectively by – Restating the comparative amount in the prior period; or – If the errors occurred before the earliest prior period presented, restating the opening balances 3.AASB110 Events O