financial accounting class

Change in accounting estimates – meaning

A change in accounting estimates is an adjustment of the carrying amount of an asset or liability, or related expenses, resulting from reassessing the expected future benefits and obligations associated with the asset or liability.

Examples of the change in accounting estimates include; change in the useful life of the non-current asset, change in the provision of bad debts, change in provision for obsolesces of inventories and change in defined benefit obligation.

1 thought on “Change in accounting estimates – meaning”

  1. Pingback: Difference between reasonable assurance and absolute assurance - ACCOUNTING CLASS

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: