IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
International Accounting Standard 8
Overview of IAS 8
- Issued: in 1978; re-issued in 1993 and 2003, followed by amendments
- Effective date: 1 January 2005
- What it does:
- It prescribes the criteria for selecting and changing accounting policy ;
- It explains a change in accounting estimate, how to recognize the effect of such a change in the financial statements and what to disclose;
- It provides the rules on how to correct errors made in the prior period financial statements
- It discusses impracticability in respect of retrospective application and retrospective restatement.
Articles about IAS 8
- Summary of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- Our machines are fully depreciated, but we still use them. What shall we do? - this article discusses very common issue which has something to do with accounting estimates and errors. Comprehensive example AND video is included.
- How to Account for Artwork under IFRS- In this article I explained how to develop your own accounting policy if other IFRS standards do not solve the issue specifically.
Questions and Answers
- How to deal with CAPEX threshold for your PPE? - this Q&A relates to materiality and immaterial errors during the period.
- How to Account for Investment Gold? - this Q&A discusses developing your own accounting policy for accounting for precious metals.
- Accounting for adjustments at the first-time adoption of IFRS
- Changing depreciation during the reporting period
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