Summary Accounting Policies IAS 8

Accounting policies are defined as the specific
Accounting principles, bases, conventions, rules and practices
applied by an entity in preparing and presenting
Policies and financial statements

Changes in Selection and Application of acc policies

Apply IFRS where applicable unless immaterial
Estimates
Choice of acc policy must result in info that is:

 Relevant
 Reliable
 Faithful Presentation

Hierarchy for developing acc policies

 IFRS
 Def, RC, Measurement FW
 Most recent pronouncements of other standard setting bodies
 Other acc literature
 Industry standards

Consistency

 Policies should be similar for similar events, conditions and transactions
 Policies should remain consistent year to year

Change in Estimate

 Recognised prospectively affecting current and future periods
 Does not change the past
Disclosure
State what happened, state effect on profit before tax, if future amt cannot be
disclosed state too

Prior Period Errors

Relating to current period – Correct before authorisation



Relating to previous periods

 Correct retrospectively in comparative figures
 Restate line items if occurred last year
 If occurred years prior to last opening balances must be restated
Disclosure