IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors lays down criteria for the selection of accounting policies and prescribes circumstances in which an entity may change an accounting policy. The standard also deals with the accounting treatment of changes in accounting policies, changes in accounting estimates, and correction of errors.
Accounting policies are the specific principles, bases, … Read the rest
Retrospective changes occur when the entity adjust the opening balance of each affected component of the equity, and the comparative figures are are presented as if the new policy had always been applied. … Read the rest
The entity shall apply the change retrospectively. This means that the accounts must be altered so that they contain the numbers which would have been there had the new policy always been in force. However, this will not apply if it is impracticable to determine either the period specific effects or the cumulative effect of the change. The initial application … Read the rest
Accounting policies are the specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.
Changes in accounting policies is dealt with in IAS 8
