08-18-2003, 11:33 PM
I must say that I am not very good in IAS as I passed my exams under UK SAS,GAAPS and FRS's. however my restricted knowledge of IAS seems to suggest that when you value the stock its not an estimate of price we use, its a factual incidence. When we change from Avg. to LIFO, you said, its change in policy. Whataabout if we change from avg. to weighted avg. of last one month, its again change in policy.
Secondly, from regulatory aspect, management may try to variate the stock valuation by changing the pricing method (in this case weighted avg. of last month). if they do that, then for the reasons of consistency comparatives needs restating. Comparatives can only be restated if change in accounting policy.
If We take it as a change in estimate, then comparatives dont need restateing and it could impair the financial statements view.
I you want to see how change in accounting policy and restatement is disclosed. please visit one of the listed company website and see their online financial statements.
I am sure ICEAW or ACCA website has guidence on this topic,]
Best of luck
Secondly, from regulatory aspect, management may try to variate the stock valuation by changing the pricing method (in this case weighted avg. of last month). if they do that, then for the reasons of consistency comparatives needs restating. Comparatives can only be restated if change in accounting policy.
If We take it as a change in estimate, then comparatives dont need restateing and it could impair the financial statements view.
I you want to see how change in accounting policy and restatement is disclosed. please visit one of the listed company website and see their online financial statements.
I am sure ICEAW or ACCA website has guidence on this topic,]
Best of luck
