Question
Holland Ltd has decided to change the way they are estimating their allowance for bad debts due to significant differences in the actual figures over
Holland Ltd has decided to change the way they are estimating their allowance for bad debts due to significant differences in the actual figures over the last 3 years. The correct accounting treatment of this event is to:
| a) | treat it as a change in an accounting estimate and adjust retrospectively | |
| b) | treat it as a change in an accounting estimate and adjust prospectively | |
| c) | treat it as a change in accounting policy and adjust retrospectively | |
| d) | treat it as an error and adjust retrospectively |
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Financial Accounting An Introduction to Concepts, Methods and Uses
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
14th edition
978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023
