ICAEW.com works better with JavaScript enabled.

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.

Become a Financial Reporting Faculty member

Find out more about the benefits of membership and joining details.

Join now


Free to view

Financial Reporting Faculty members only

How standards trackers work

Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via IFRS Standards Navigator.

ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.

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.


  • 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

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

Which version of the standard?

Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.

Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.

Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

The following interpretations refer to IAS 8

Current proposals

  1. 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 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

UK reduced disclosures – FRS 101

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 for FRS 101 preparers

There are no amendments to IAS 8 in order to comply with the Companies Act and related Regulation.

Disclosure exemptions for FRS 101 preparers

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.

Other resources


This page was last updated 30 August 2022.