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Accounting Policies and Accounting Estimates (Potential Amendments to IAS 8) [Completed]

Effective date:

The amendments are effective for annual periods beginning on or after January 1, 2023 and changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Earlier application is permitted.

Last up­dated:

June 2021

Overview

The purpose of this project was to clarify the distinction between a change in an accounting policy and a change in an accounting estimate, in relation to the application of IAS 8. The project was added to the International Accounting Standards Board's (IASB) work plan in May 2015.

Companies find it difficult to distinguish between a change in accounting policy and a change in accounting estimate, especially when it relates to a change in a measurement method. This distinction is important because changes in accounting estimates often affect an entity’s profit or loss, but changes in accounting policies generally do not.

The IASB proposed clarifying the definitions of "accounting policies" and "accounting estimates" in IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors by making those two definitions more distinct and concise. The IASB also proposed clarifying, through additional guidance and examples, how accounting policies and accounting estimates relate to each other and how companies decide whether a change in valuation technique or a change in estimation technique is a change in an accounting estimate.

In this project, the Board developed amendments to IAS 8—these amendments introduced a definition of accounting estimates and included other amendments to IAS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

In February 2021, the International Accounting Standards Board (Board) issued Definition of Accounting Estimates, which amended IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

The amendments introduced the definition of accounting estimates and included other amendments to IAS 8 to help entities distinguish changes in accounting estimates from changes in accounting policies.

On June 1, 2021, the AcSB issued the amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, to Part I of the CPA Canada Handbook - Accounting.

Other developments

June 2021

On June 1, 2021, the AcSB issued the amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, to Part I of the CPA Canada Handbook - Accounting.

February 2021

On February 12, 2021, the IASB published Definition of Accounting Estimates (Amendments to IAS 8) to help entities to distinguish between accounting policies and accounting estimates. The amendments are effective for annual periods beginning on or after January 1, 2023.

December 2020

On December 18, 2020, the IASB staff updated the Work Plan to indicate that the Board plans to issue the amendments to IAS 8 in February 2021.

November 2020

On November 20, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue the amendments to IAS 8 in Q1/2021

September 2020

On September 28, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue the amendments to IAS 8 in December 2020.

April 2020

On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue the Amendments to IAS 8 in Q4/2020.

November 2019

On November 25, 2019, the IASB IASB staff updated the Work Plan to indicate that the Board plans to issue the Amendments to IAS 8 (no date specified yet).

October 2019

On October 25, 2019, the IASB staff updated the work plan to indicate that the Board expects to finalize the amendments to IAS 8 at a future meeting (no date specified).

On October 1, 2019, the IASB staff updated the work plan to indicate that the Board expects to decide the project direction in December 2019.

July 2019

On July 29, 2019, the IASB staff updated the work plan to indicate that the Board expects to decide the project direction in Q4/2019.

March 2019

On March 14, 2019, the IASB staff updated the work plan to indicate that the Board will decide the project direction at a future meeting (no date specified).

January 2019

On January 25, 2019, the IASB staff updated the work plan to indicate that the Board expects to decide the project direction in April 2019.

December 2018 

On December 14, 2018, the IASB staff updated the work plan to indicate that the Board expects to decide the project direction in Q2/2019.

September 2018 

On September 20, 2018, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in December 2018.

July 2018 

On July 18, 2018, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in October 2018.

March 2018 

On March 23, 2018, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction at a future meeting.

December 2017 

On December 18, 2017, the IASB staff updated the work plan to indicate that the IASB expects to review the Exposure Draft Feedback in March 2018.

October 2017

On October 4, 2017, the AcSB issued its exposure draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by January 15, 2018.

September 2017

On September 22, 2017, the IASB staff updated the work plan to indicate that the IASB expects to review the Exposure Draft Feedback in Q1 2018.

On September 12, 2017, the IASB published an exposure draftAccounting Policies and Accounting Estimates (Proposed amendments to IAS 8), to help entities to distinguish between accounting policies and accounting estimates. Comments are requested by January 15, 2018.

June 2017

In June 2017, the IASB staff updated the work plan to indicate that the IASB expects to issue an Exposure Draft in September 2017.

April 2017

On April 28, 2017, the IASB staff issued an updated Work Plan which indicates that the IASB expects to publish an Exposure Draft for public comment in respect of this project in June 2017.

March 2017

On March 23, 2017, the IASB staff issued an updated Work Plan which indicates that the IASB expects to publish an Exposure Draft in respect of this project for comment by September 2017.

December 2016

On December 15, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to publish an Exposure Draft for comment by June 2017.

September 2016

On September 23, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to publish an Exposure Draft for comment by March 31, 2017.

July 2016

On July 20, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to publish an Exposure Draft for comment sometime before January 31, 2017.

July 2015

On July 31, 2015, the IASB updated its work plan. The ED will be delayed to Q1 2016 at the earliest.

 

Correction list for hyphenation

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