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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).