What do you know about ( IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors)?

IAS8 deals with selecting and accounting for  changes in accounting estimates and errors. The main objective of the standard is to prescribe the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosures of changes in accounting policies, changes in accounting estimates and corrections of errors. IAS8  is intended to enhance the relevance and reliability of an entity's financial statement over time and with the financial statements of other entities. Companies should apply this standard in selecting and applying accounting policies and accounting for changes in accounting policies, changes in accounting estimates and corrections of prior period errors.

An entity shall change an accounting policy only if the change:

           *     Is required by a standard or an interpretation, or

           *     Results in the financial statement providing reliable and more relevant information about the effects of transactions other events or conditions on the entity's financial position, financial performance or cash flows.

An entity should recognise the effect of a change in an accounting estimate prospectively by including it in the statement of financial statement in the period of the change, if the change affects that period only and the period of the change and future periods, if the change affects both.

IAS8 Accounting regulations, adjustments in Accounting Estimates and errors is implemented in selecting and applying accounting regulations, accounting for adjustments in estimates and reflecting corrections of previous duration errors.

The same old calls for compliance with any particular IFRS making use of to a transaction, event or circumstance, and affords steering on developing accounting guidelines for other items that result in applicable and reliable data. Changes in accounting guidelines and corrections of errors are generally retrospectively accounted for, whereas modifications in accounting estimates are typically accounted for on a prospective basis.

IAS8 become reissued in December and applies to annual durations beginning on or after1 January.