Global Standards for the world economy

Tuesday 16 July 2019

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Project news


The Board instructed the staff to begin the balloting process for publishing an Exposure Draft of amendments to IAS 8

 20 September 2016


In April 2016, the Board discussed possible amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, in particular, the definitions of ‘accounting policies’ and of a ‘change in accounting estimates’ (Agenda Paper 25A).

At its September 2016 meeting, the Board discussed:

Agenda Paper 26A—Changes to wording

The Board tentatively decided to change the draft amendments discussed in April 2016 to:

  • remove the threshold for changes in estimation techniques and in valuation techniques. That threshold, inserted in the draft amendments in April 2016, would have permitted such changes only if the resulting measurement would be equally or more representative of the amount being estimated;
  • add ‘practices’ to the amended definition of accounting policies; and
  • add guidance about changes in the cost formulas that paragraphs 25–27 of IAS 2 Inventories specify an entity should use in determining the cost of interchangeable inventories.

Eleven of the 12 Board members agreed with each of these decisions.


Agenda Paper 26B—Transition

The Board tentatively decided to require prospective application of the proposed amendments.  Thus, the proposed amendments would apply to all and only those changes in accounting policies and accounting estimates that occur on or after the beginning of the first annual reporting period when the amendments become effective.

All 12 Board members agreed with this decision.


Agenda Paper 26C—Due process

All 12 Board members confirmed they are satisfied that the Board has completed the necessary due process for the project. Therefore, the Board instructed the staff to begin the balloting process for issuing an Exposure Draft of amendments to IAS 8. No Board members indicated they would dissent from the decision to issue an Exposure Draft.

All 12 Board members also decided that the comment period for the Exposure Draft should be no less than 120 days.

Next Steps

The Board expects to publish the Exposure Draft in the first quarter of 2017.