Page 12 - Finac1 Test 1 slides - 6. IAS 8

IAS 8

Changes in accounting policies

• A change in accounting policy should only be made if

• required by a statement or an interpretation; or

• it results in the financial statements providing reliable and more
relevant information about the effects of transactions, other

events or conditions on the entity's financial position, financial

performance or cash flows (IAS 8.14).

(a) Change in accounting policy due to initial adoption of

statement or interpretation

• If the change in accounting policy is required due to the initial
application of a statement or interpretation, the change should be

accounted for in accordance with the transitional provisions of
that statement or interpretation.

• If no transitional provisions are supplied, the change should be
accounted for retrospectively (IAS 8.19)(b).

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