This topic includes FAQs relating to the following IFRS standards, IFRIC Interpretations and SIC Interpretations:
|IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
Sub-topic within this main topic are set out below, with links to IFRS Interpretation Committee agenda decisions and BDO IFRS FAQs relating to that sub-topic below each sub-topic:
|Sub-topic and Related FAQ
|Scope and definitions
|Selection, application and consistency of accounting policies
|Changes in accounting policies
|Disclosure of accounting policies
|Changes in accounting estimates
|Impracticability in respect of retrospective application and retrospective restatement
Text of FAQ
IFRIC Agenda Decision - Application of the IAS 8 hierarchy
March 2011 - IAS 8 requires management to use judgement in developing and applying an accounting policy that results in information that is relevant and reliable, in the absence of an IFRS that specifically applies to a transaction. IAS 8 specifies that management shall refer to and consider the applicability of requirements in IFRSs dealing with similar and related issues. The Interpretations Committee received a question as to whether it could be appropriate to consider only certain aspects of an IFRS being analogised to, or whether all aspects of the IFRS being analogised to would be required to be applied.
The Committee observed that when management develops an accounting policy through analogy to an IFRS dealing with similar and related matters, it needs to use its judgement in applying all aspects of the IFRS that are applicable to the particular issue.
The Committee concluded that the process for developing accounting policies by analogy does not need to be clarified in paragraphs 10–12 of IAS 8 because the current guidance is sufficient. Consequently, the Committee decided that this issue should not be added to its agenda.
IFRIC Agenda Decision - Impracticability—Transition issues under IFRS 1
October 2004 - The IFRIC considered two issues regarding first-time adoption of IFRSs. The first issue was whether the ‘impracticability’ exception under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors should also apply to first time adopters. The IFRIC agreed that there were potential issues, especially with respect to ‘old’ items, such as property, plant and equipment. However, those issues could usually be resolved by using one of the transition options available in IFRS 1.
The second issue was ...
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