Overview

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors is applied in selecting and applying accounting policies, accounting for changes in estimates and re­flect­ing cor­rec­tions of prior period errors.

Objective

The standard requires com­pli­ance with any specific IFRS applying to a trans­ac­tion, event or condition, and provides guidance on de­vel­op­ing accounting policies for other items that result in relevant and reliable in­for­ma­tion. Changes in accounting policies and cor­rec­tions of errors are generally ret­ro­spec­tively accounted for, whereas changes in accounting estimates are generally accounted for on a prospec­tive basis.

IAS 8 was reissued in December 2005 and applies to annual periods beginning on or after 1 January 2005.