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+ 1 IL Page view A Read aloud marks. 1. KPMG are the new auditors for Post Fiji for the year ended 30 June 2021. KPMG has just found out the sales figure reported on 30 June 2020 was understated by $57 800. What is the correct accounting treatment for this event? A treat it as a change in an accounting estimate and adjust prospectively B treat it as a change in an accounting estimate and adjust retrospectively This is a prior period error and it needs to be adjusted prospectively D This is a prior period error and it needs to be adjusted retrospectively a 2. Gokals Limited a Fiji based equipment company has discovered that the estimated useful life for a depreciable asset is incorrect due to a change in the way the asset is being used. The correct accounting treatment for this event is to: A treat it as an error and adjust retrospectively B disclose the change in the notes to the financial statements treat it as a change in an accounting estimate and adjust prospectively. D treat it as a change in an accounting estimate and adjust retrospectively. 3. Included in a statement of changes in equity are the following items: I. Gains or losses not recognised in the statement of profit or loss and other comprehensive income. II. New share issues. TIL Dividends paid. IV. Opening and closing balances Profit or loss for the period. A 1, II & III B II, III, IV and V I, II, IV and v

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