IAS 8 prescribes the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates, and corrections of errors. When there is no specific standard that applies to a transaction, other events, or condition, IAS 8 requires that Management apply judgment. But just exactly how do you do it?
Guessing will not suffice, nor will management’s insistence on adopting a significant change. So knowing if the criteria to be applied are acceptable under IAS 8 is critical to satisfying the auditor and management to proceed with changes in accounting policies, changes in accounting estimates, and corrections of prior period errors, that do not contradict IFRS.
Course Key Concepts: IFRS, Accounting Policies, Changes in Accounting Estimates, Errors.
Prerequisites
No advanced preparation or prerequisites are required for this course.
Learning Objective
- Identify and know the rules for selecting and applying accounting policies.
- Explore and examine the guidelines for categorizing items in the financial statements.
- Recognize and understand when can an entity change its accounting policy?
- Identify and dealing with a change in accounting estimate.
- Discover the accounting for prior period errors.
- Explore how to handle transactions when there is no specific standard that applies.
- Recognize and review disclosure requirements.
- Identify how to be familiar with financial statement presentation.
Last updated/reviewed: July 9, 2025
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INTRODUCTION AND OVERVIEW
- Introduction to How IAS 8 Handles Accounting Policies, Changes in Accounting Estimates and Errors 2:25
- Objective and Application 1:03
- Definitions 7:50
- Accounting Policies 5:52
- Change in Accounting Policies 2:24
- Applying Changes in Accounting Policies 2:52
- Limitations on Retrospective Application 4:05
- Disclosures 5:09
- Changes in Accounting Estimates 4:40
- More Disclosures 0:47
- Errors 2:11
- Limitations on Retrospective Restatement 3:27
- Even More Disclosures 1:29
- Impracticability 4:38
CONTINUOUS PLAY
SUPPORTING MATERIAL
- Slides: How IAS 8 Handles Accounting Policies, Changes in Accounting Estimates and Errors PDF
- How IAS 8 Handles Accounting Policies, Changes in Accounting Estimates and Errors Glossary/ Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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