Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8/AASB 108)

Corporate Reporting Insights

BDO's monthly newsletter, Corporate Reporting Insights, keeps you up to date with the latest Australian and global developments in corporate financial and sustainability reporting.

• Time to clean up your accounting policies (October 2023)
• 8 ways to make your financial statements say what you mean (October 2023)
• Expect to see a reduction in the amount of accounting policy disclosures (March 2021)
• IASB clarifies how to distinguish between a change in accounting policy and a change in accounting estimate​ (March 2021)
• IASB issues guide on selecting and applying accounting policies (December 2019)
• How to account for changes in accounting policies as a result of IFRS Interpretations Committee decisions (April 2018).

BDO Global IFRS resources

The following publications have been produced by the BDO Global IFRS group:

► IFRS at a Glance

A high level overview of International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations.

• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 8 Basis of Preparation of Financial Statements (refer Appendix 1 – as amended for IFRS 18).

► IFR Bulletins

Focus on latest developments in international financial reporting.

• IASB issues amendments to IAS 1, IAS 8 and IFRS Practice Statement 2 – Disclosure of accounting policies and definition of accounting estimates (IFRB 2021 07).

Webinars

BDO Australia conducts monthly complimentary webinars as an easy way to stay up to date with changes to accounting standards and other financial reporting developments. Recent webinars on this topic include:

• ​Selection of Appropriate accounting policies – Aligning with the Organisation’s Stage of Life​ (April 2021)
• Selection of appropriate accounting policies - Understand the basic alternatives​ (March 2021).

IFRIC agenda decisions

IFRS Interpretations Committee (the Committee) agenda decisions are those issues that the Committee decided not to take onto its agenda. Although not authoritative guidance, in practice they are regarded as being highly persuasive, and all entities reporting under IFRS should be aware of these decisions because they could impact the way particular transactions and balances are accounted for. Agenda decisions on this topic include:

• Deposits relating to taxes other than income tax – IAS 37 (January 2019) and FAQ
• Contributing PPE to an ​associate (January 2018) and FAQ
• Application of the IAS 8 hierarchy (March 2011) and FAQ
• Impracticability – Transition issues under IFRS 1 (October 2004)​ and FAQ.