AASB 101 Requires That Accounting Policy Changes Be Disclosed in a Note

Multiple Choice

AASB 101 requires that accounting policy changes be disclosed in a note to the financial statements. A business bought new equipment and thought it would have a six- year useful life. After two years, the business decided that the equipment would be useful for only three more years. This would be considered a:

A) contingency.
B) change in accounting policy.
C) change in accounting estimate.
D) recording error.