This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Changes in accounting policies and estimates

Background

The requirements in IFRSs, in particular in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, make a distinction between how an entity should present and disclose different types of accounting changes in its financial statements. Changes in accounting policies must be applied retrospectively while changes in accounting estimates are accounted for prospectively.

Companies sometimes struggle to distinguish between accounting policies and accounting estimates and enforcers have identified divergent practices. Therefore, the Interpretations Committee received a request to clarify the distinction. The Interpretations Committee observed that it would be helpful if more clarity were given and brought the issue to the IASB’s attention for future consideration as part of the disclosure initiative.

 

Current status of the project

An exposure draft Accounting Policies and Accounting Estimates (Proposed amendments to IAS 8) was published on 12 September 2017 with comments requested by 15 January 2018. First feedback on the ED is expected in March 2018.

 

Project milestones

Date Development Comments
May 2015
Project formally added to the IASB agenda
12 September 2017
ED/2017/5 Accounting Policies and Accounting Estimates (Proposed amendments to IAS 8) published
Comments requested by 15 January 2018

 

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.