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IAS 8

Accounting estimates

• The effect of a change in accounting estimate should be
included in the determination of net profit or loss

prospectively in

• the period of the change, if the change effects that period
only; or

• the period of the change and future periods, if the change
affects both (IAS 8.36).

• The useful life of any item of property, plant and equipment

and the depreciation method that is applied, should be
revised periodically.

• When it is apparent that an adjustment is required in either
of the two cases, the adjustment is treated as a change in
estimate in agreement with IAS 8.

• The depreciation charges for the current and future periods
are adjusted and no adjustment is made to the depreciation

charges of prior years.

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