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Saturday 21 September 2019

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The proposed amendments to IAS 8 were discussed at the April 2016 IASB meeting

 21 April 2016


As part of its Disclosure Initiative, the Board met on 21 April to discuss changes in accounting policies and changes in accounting estimates. The papers for this discussion were prepared jointly by the IASB staff and the staff of the Italian standard-setter, Organismo Italiano di Contabilità.


Agenda Paper 25A: distinction between changes in accounting policies and changes in accounting estimates

The Board tentatively decided to amend the definitions of accounting policies and changes in accounting estimates in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors in order to:

 

  1. clarify the definitions of accounting policies and of changes in accounting estimates with the objective of making them more concise and distinctive;
  2. clarify how accounting policies and estimates relate to each other;
  3. add guidance about whether changes in valuation techniques and in estimation techniques are changes in accounting estimates; and
  4. update examples of estimates provided in IAS 8.

Thirteen of the fourteen IASB members agreed with this decision. The Board also tentatively decided that the proposed amendments should be published as a separate Exposure Draft and not in an Exposure Draft of Annual Improvements. All IASB members agreed with this decision.

The Board will discuss transition for the proposed amendments to IAS 8 at a future meeting.


Agenda Paper 25B: changes in accounting estimates: disclosure

The Board tentatively decided that it would not amend the requirement, in paragraph 39 of IAS 8, to disclose the nature and amount of a change in an accounting estimate. Twelve of the fourteen IASB members agreed with this decision.