Access the standard
- 2023 Issued Standard – IAS 8
The 2023 Issued Standards include all amendments issued up to and including 1 January 2023.
Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).
Summary
- Accounting policies should be determined by reference to the relevant IFRS.
- If there is no relevant IFRS, management should use judgement to select a policy which results in reliable and relevant financial information.
- A change in an accounting policy is permitted only where it is required by an IFRS or it results in more relevant and reliable information.
- Changes in accounting policy should be applied retrospectively.
- Changes in accounting estimate should be applied prospectively.
- Errors should be corrected retrospectively.
Current proposals
-
ED/2019/7 General Presentation and Disclosures
ED/2019/7 General Presentation and Disclosures was issued in December 2019. This is the exposure draft of a proposed new standard that would replace IAS 1. Consequential amendments to IAS 8 are proposed including:
- Changing the name of IAS 8 to Basis of Preparation, Accounting Policies, Changes in Accounting Estimates and Errors and making changes to the Objective and scope paragraphs of the standard to reflect this.
- Moving the paragraphs on general features of financial statements that are currently within IAS 1 (paragraphs 15 – 28) to IAS 8.
- Moving the paragraphs on disclosure of accounting policies that are currently within IAS 1 (paragraphs 117 – 133) to IAS 8.
Recent amendments
Log in to read more
These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.
Related IFRIC interpretations
-
IFRIC 1 Existing Decommissioning, Restoration and Similar Liabilities
Addresses accounting for a change in a provision that is included in the carrying amount of an item of PPE. -
IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
Provides guidance on how a contributor to a decommissioning fund should account for its interest in a fund. -
IFRIC 6 Liabilities Arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment
Clarifies when producers of electrical goods must recognise a liability under IAS 37 for the cost of managing waste electrical and electronic equipment. -
IFRIC 12 Service Concession Arrangements
Accounting guidance for arrangements where a contract is granted for the supply of public services such as roads. -
IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
Provides general guidance on how to assess the limit in IAS 19 on the amount of the surplus that can be recognised as an asset. Explains how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement. -
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
Provides guidance on what can be an eligible hedged risk, which entities may hold the hedging instrument and reclassification adjustments. -
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
Addresses the accounting by an entity which issues equity instruments in order to settle, in full or part, a financial liability. -
IFRIC 21 Levies
Provides guidance on when to recognise a liability for a levy imposed by a government. -
IFRIC 22 Foreign Currency Transactions and Advance Consideration
Clarifies the accounting treatment applicable to transactions that include the receipt or payment of foreign currency consideration in advance. -
IFRIC 23 Uncertainty over Income Tax Treatments
Clarifies how to apply the recognition and measurement requirements of IAS 12 when there is uncertainty over income tax treatments. -
SIC 7 Introduction of the Euro
The effective start of the EMU after the reporting date does not alter the requirements of IAS 21 at the reporting date. -
SIC 10 Government Assistance – No Specific Relation to Operating Activities
Government assistance aimed at long-term support of business activities in certain regions or business sectors meets the IAS 20 definition of government grants. -
SIC 25 Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
Addresses the deferred tax consequences of changes in tax status of an enterprise or its shareholders.
UK reduced disclosures – FRS 101
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.
Log in to read more
These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.
ICAEW factsheets and guides
The Corporate Reporting Faculty's annual IFRS factsheets provide a more detailed discussion of recent IFRS amendments.
The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.