IAS 8: Changes in accounting policy, accounting estimates and errors

IAS 8: Changes in accounting policy, accounting estimates and errors

TESTED IN 3 WAYS:

  1. Change in Estimate
    1. Prospectively (Current & Future)
  2. Change in Errors
    1. Retrospectively (Comparative periods & Opening balances restated: as if error never made)
  3. Change in Accounting Policy
    1. Only change if 1: required by standard 2: Will make info more relevant & reliable
    2. Can only test 2 WAYS:
      1. Weighted Ave to FIFO or vice versa
      2. IAS 40 Cost Model to Fair Value CANNOT vice versa
    3. Retrospectively (Comparative periods & Opening balances restated: as if error never made)
    4. Disclose properly
      1. Voluntary Change:
        1. Nature of acc policy change
        2. Reason why apply makes more reliable
        3. Each Current & Prior Period Practical amount of adj:
          1. Each fs line item
          2. Basic & diluted earnings per share
        4. Amounts of adj relating to periods before those presented
        5. If retrospective impractical: why, when acc policy applied