Accounting Estimates

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....g estimates involves the use of judgements or assumptions based on the latest available, reliable information. Usage of estimate doesn't reduce the reliability of financial statements. Following are general estimation used in Financial Statements; * a loss allowance for expected credit losses, applying Ind AS 109, Financial Instruments; * the net realisable value of an item of inventory, appl....

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....ur hence it is not a prior period item and is not the correction of error. Applying Changes in Accounting Estimates The effect of change in an accounting estimate, shall be recognised prospectively by including it in profit or loss in: * the period of the change, if the change affects that period only; or * the period of the change and future periods, if the change affects both. To the exte....