IAS 8

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IAS 8 revision question (NBAA C2 NOV 2018)



Due to the complexity of International Financial Reporting Standards (IFRSs), judgements used at the time of transition to IFRSs have often resulted in prior period adjustments and changes in estimates being disclosed in financial statements. The selection of accounting policies and estimation techniques are intended to aid comparability and consistency in financial statements.
However, IFRSs … Read the rest

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2 situation in which an entity is permitted to change its accounting policy.

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

The following are situations in which an entity can change its accounting polices:



An entity is permitted to change an accounting policy only if … Read the rest

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What is meant by retrospective application of accounting policy as per IAS 8?

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

Retrospective application of accounting policy means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy … Read the rest

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Accounting policy – meaning

IAS 8: Accounting Polices, 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 accounting treatment of changes in accounting policies, changes in accounting estimates and correction of errors.

Accounting policies are the specific principles, bases, conventions, rules … Read the rest

What is statistical sampling?

Accounting treatment for change in accounting estimate.

A change in accounting estimates is an adjustment of the carrying amount of an asset or liability, or related expenses, resulting from reassessing the expected future benefits and obligations associated with the asset or liability.
Change in accounting estimates are not correction of errors.
The  effects of change in accounting estimates, shall be recognized prospectively (i.e from the date of … Read the rest

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2020 Updated list of International Accounting Standards (IAS)

The following are the list of updated international accounting standards (IAS) in 2020:

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The required accounting treatment for the Correction of an Error.

IAS 8: Accounting Polices, 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 accounting treatment of changes in accounting policies, changes in accounting estimates and correction of errors.

The following are steps required to correct previous years

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