Políticas Contábeis, Mudança de Estimativa e Retificação de Erro | Contabilidade Avançada | 2ª ed.

Summary

This video lesson focuses on accounting policy changes, accounting estimate revisions, and error corrections as outlined in the CPC 23 standard. The content explores the definitions and importance of accounting policies, the necessity for uniformity and comparability in financial reporting, and the process for applying retrospective changes when policies are altered. Additionally, it covers how estimates are revised based on new information and why corrections for errors must be made in subsequent periods. The lesson emphasizes practical approaches for applying these concepts, ensuring clarity and accuracy in financial reporting for businesses.

Takeaways

• 😀 Accounting policies are specific rules or principles applied to account for financial transactions, such as how to value assets like fixed assets or inventories.
• 😀 Changes in accounting policies should only be made if they provide more reliable or relevant information, and any changes must be applied retrospectively to ensure comparability.
• 😀 The primary reason for maintaining consistent accounting policies is to ensure comparability between financial periods, enabling stakeholders to make informed decisions.
• 😀 When a company decides to change an accounting policy, it must apply the change retrospectively, meaning it should adjust the previous periods as if the new policy had always been in use.
• 😀 If applying retrospective changes is impractical due to time, system limitations, or other factors, the company can apply changes prospectively but must justify this in the notes to the financial statements.
• 😀 Accounting estimates are judgments made about future events, such as the estimated useful life of an asset, and are revised when new information or developments arise.
• 😀 Unlike accounting policies, changes to accounting estimates are applied prospectively, meaning only future periods are adjusted, not past ones.
• 😀 A change in accounting estimate might include revising an asset's useful life, which will affect the depreciation expense but will not alter previous periods' financial statements.
• 😀 Errors in previous periods, if material, must be corrected in the financial statements of the period in which they are discovered, and comparative figures should be restated to reflect the correction.
• 😀 When correcting an error from a previous period, the company must restate the financial statements of that period and adjust the retained earnings, ensuring the correction is visible in the current period’s financials.
• 😀 If a material error is discovered from multiple years ago, the company must restate all affected periods, starting from the earliest affected year, ensuring the most accurate financial presentation possible.

Q & A

What is the main focus of Chapter 16 in the advanced accounting book?

Chapter 16 of the advanced accounting book focuses on the treatment of changes in accounting policies, changes in accounting estimates, and the correction of errors, as outlined by CPC 23.

What are accounting policies, and can they be changed?

Accounting policies are the specific principles, conventions, rules, and bases used to record financial transactions. They can be changed, but the change must be justified and applied retrospectively unless impractical.

Why is comparability important in accounting, and how does it relate to accounting policies?

Comparability ensures that financial information from different periods can be compared, which is crucial for users to assess a company's performance over time. Consistent accounting policies help maintain comparability between periods.

What happens if a company wants to change its accounting policy?

If a company decides to change its accounting policy, the change must be applied retrospectively. This means the company must apply the new policy to prior periods as if it had always been used.

When is it not required to apply a retrospective change to accounting policies?

Retrospective application of a change in accounting policy is not required if it is impractical. If it's not possible due to time, system limitations, or other factors, the company can apply the change prospectively and must explain this in the notes.

What is the difference between a change in accounting policy and a change in an accounting estimate?

A change in accounting policy involves altering the principles or methods used to account for transactions, while a change in an accounting estimate involves revising a forecast or judgment based on new information or developments.

How should changes in accounting estimates be handled?

Changes in accounting estimates should be applied prospectively, meaning the new estimate affects only the current and future periods, not past periods.

What is an example of a change in accounting estimate?

An example of a change in accounting estimate is revising the useful life of an asset. For instance, if a machine was originally estimated to have a 10-year life, but after five years, it is determined it will only last three more years, the depreciation is recalculated from that point forward.

How are errors in financial statements corrected?

Errors discovered in previous periods must be corrected retrospectively. This involves adjusting the financial statements for prior periods to reflect the error and presenting them as if the error never occurred.

What is the procedure if an error from a previous year is discovered in the current year?

If an error from a prior year is discovered in the current year, the company must adjust the financial statements of the current year and restate the prior year's comparative data to reflect the correction.