Which, if any, of the following statements are correct according to IAS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies?
(1) The correction of a fundamental error relating to a past period should be made in the current period. It is not acceptable to make the correction by adjusting the opening balance of retained earnings. (2) A change in an accounting estimate constitutes a fundamental error and should be accounted for as such. (3) The benchmark treatment for a change of accounting policy is normally to apply it retrospectively, with adjustment to the opening balance of retained earnings.
A 1 only B 2 only C 3 only D None of the statements are correct.
