AcSB Response – Accounting Policies and Accounting Estimates (Proposed amendments to IAS 8)

  • IFRS - AcSB Image

Jul 26, 2018

On July 26, 2018, the Accounting Standards Board (AcSB) submitted a comment letter responding to the International Accounting Standards Board’s (IASB) Exposure Draft issued in March 2018.

The letter disagrees with the proposals to amend IAS 8 to lower the impracticability threshold for retrospective application of voluntary changes in accounting policy resulting from agenda decisions published by the IFRS® Interpretations Committee (agenda decisions).

The AcSB expresses concerns that amending IAS 8 as proposed would essentially elevate the authority of agenda decisions without the extent of due process expected for such an outcome.

The AcSB also notes that the proposals could lead to unintended consequences in jurisdictions, including Canada, where entities are expected to apply accounting policies in line with explanatory material in agenda decisions and, therefore, such changes in accounting policy are not voluntary in practice.

The AcSB strongly encourages the IASB to consider another mechanism, such as a change in the process around agenda decisions, to achieve its objectives for this project.

Review the AcSB letter posted on the IASB's website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.