Global Standards for the world economy

Friday 30 September 2016

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IFRS Interpretations Committee

Accounting Policies, Changes in Accounting Estimates and Errors: Distinction between a change in accounting policy and a change in accounting estimate


 Proposed Amendments to IAS 8 (Distinction between a change in accounting policy and a change in accounting estimate)

Project Objective

The objective of the proposed amendment is to clarify the existing distinction between a change in accounting policy and a change in accounting estimate.

In September 2014 the IFRS Interpretations Committee informed the IASB about divergent practices regarding the assessment of whether an accounting change represents a change in accounting policy, or a change in accounting estimate, in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. In that meeting, the IASB decided that any proposals to amend the guidance on changes in accounting policies and accounting estimates should be considered as part of the Disclosure Initiative.