IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 8 prescribes criteria for the selection of accounting policies. It also clarifies when a change in accounting policy is acceptable and provides guidance on the accounting treatment of such changes, as well as changes in accounting estimates and errors.
Published December 2003. Effective 1 January 2005.
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Synopsis (including link to unaccompanied version of IAS 8)
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ED/2017/6 Definition of Material – Proposed Amendments to IAS 1 and IAS 8 was issued in October 2017. This project is concerned with refining the definition of materiality and clarifying its characteristics. The ED proposes that the IAS 8 definition of material is modified to refer to the fact that obscuring information has a similar effect as omitting information; change the phrase ‘could influence’ to ‘could reasonably be expected to influence’; and emphasise primary users. Read ED/2017/6 Definition of Material – Proposed Amendments to IAS 1 and IAS 8
ED/2018/1 Accounting Policy Changes - Proposed amendments to IAS 8 was issued in March 2018. It proposes amending IAS 8 to lower the impracticability threshold regarding retrospective application of voluntary changes in accounting policies that result from agenda decisions. The proposed threshold would include a consideration of the costs and benefits of applying such changes retrospectively. Read ED/2018/1 Accounting Policy Changes – Proposed amendments to IAS 8
UK reduced disclosures
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
Amendments to the standard
There are no amendments to IAS 8 in order to comply with the Companies Act and related Regulation.
FRS 101 paragraph 8(i) states that a qualifying entity is exempt from the IAS 8 requirement to disclose details of a new IFRS which has been issued but is not yet effective and has not been applied by the entity.
IAS 8 paragraphs for which exemption is available: 30 and 31.