Page 13 - 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.

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