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IAS 8

Changes in accounting policies

(b) Voluntary change in accounting policy

• If the change in accounting policy is made to reflect
more relevant and reliable information (a voluntary

change in accounting policy), the change should be

accounted for retrospectively (IAS 8.19b).

(c) Retrospective application

• When a change in accounting policy is applied

retrospectively, the entity adjusts the opening balance

of each affected component of equity for the earliest

prior period presented and the other comparative

amounts disclosed for each prior period presented as if

the new accounting policy has always been applied (IAS

8.22).

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