Page 235 - F1 Integrated Workbook STUDENT 2018

IAS 2, 8, 10, 34 and IFRS 8

2.2 Accounting policies

Accounting policies are the principles, bases, conventions, rules and practices
applied by an entity which specify how the effects of transactions and other events
are reflected in the financial statements.

Accounting policies should be selected and applied so as to comply with the
requirements of IFRS Standards.

If however, there are no specific policies for a particular transaction, the accounting
policy should be developed so as to meet the following objectives:

 selection of accounting policies

 changes in accounting policies

 changes in accounting estimates

 correction of prior period errors

 Relevant to the economic decision-making needs of users.

 Reliable, i.e.

– report a faithful representation

– report the economic substance of transactions in preference to

 legal form

– neutral

– prudent

– complete

 Entities should consider IFRS Standards that deal with similar and related
issues. They should also consider the definitions, recognition criteria and
measurement concepts contained in the conceptual framework.

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