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LAS 8 Question 3 While preparing financial statements of Bilal Limited ( BL ) , you noted the following points: ( a ) BL changed
LAS
Question
While preparing financial statements of Bilal Limited BL you noted the following points:
a BL changed its accounting for land and buildings from cost model to revaluation model.
b The useful life of plant was revised downwards following impairment loss.
c The depreciation method for depreciating furniture was changed from straight line method to
reducing balance method.
d The cost formula used for valuation of inventories was changed from FIFO to weighter
average.
e It was discovered that last year company's inventory sheets were undercasted.
f It was discovered that actual NRV of inventory was much lower than expected.
Required
Whether the above are changes in accounting policies, accounting estimates or errors.
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