Page 15 - PowerPoint Presentation

IAS 8

IAS 1: Statements Of Financial Position

• According to IAS 1.40A-B an entity shall present three

statements of financial position if an accounting policy is

applied retrospectively, or if the entity makes retrospective

restatements or reclassifications.

• Examples when three statements of financial position are

required:

• Retrospective change in accounting policy for valuation of

inventory (e.g. weighted average to first-in-first-out);

• Errors in prior periods;

• Reclassification adjustments of amounts previously recognised in

other comprehensive income to profit or loss;

• Reclassification adjustments on disposal of a foreign operation,

derecognition of available-for-sale financial assets and when a

hedged forecast transaction affects profit or loss (IAS 1.95); or

• Other retrospective changes in accordance with IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors.