Buy custom Provide an example of an accounting estimate and explain how a change in your estimate could occur. What action does IAS 8 require when such a change occurs?
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An example of an accounting estimate is company A making a 5% provision for bad debts on credit sales. This is because company A can't know how much of its receivables that they won't be able to collect. This is to make sure that the entity is prepared for any loss of income associated with their credit sales...
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An example of an accounting estimate is company A making a 5% provision for bad debts on credit sales. This is because company A can't know how much of its receivables that they won't be able to collect. This is to make sure that the entity is prepared for any loss of income associated with their credit sales...
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Provide an example of an accounting estimate and explain how a change in your estimate could occur. What action does IAS 8 require when such a change occurs?
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