Amendments to

IAS 8 Accounting Policies, Changes in

Accounting Estimates and Errors
GROUP B:

Burato, Melanie
Cabawatan, Christine
Castillo, Rod Stephen
SLIDESMANIA

Castro, Mae Lalaine

Catanduanes, Niña
 IAS 8

Accounting Estimates Accounting Policies Prior Period Error

SLIDESMANIA
 Reason for amendments
The amendments are to clarify the distinction
between the changes in accounting estimates and
changes in accounting policies and correction of
errors.
SLIDESMANIA
 The main matters the Board considered in developing the definition and
related requirements included:

● the relationship between accounting policies and accounting estimates

- the amendments clarify the relationship between accounting policies
and estimates by specifying that an entity develops an accounting estimate to
achieve the objective set out by an accounting policy.
● Judgment and assumptions
- accounting estimates are the output of measurement techniques that
require an entity to use judgments or assumptions and that the judgments or
assumptions are not accounting estimates themselves.
SLIDESMANIA
 The main matters the Board considered in developing the definition and
related requirements included:

● Measurement uncertainty
- uncertainty that arises when monetary amounts in financial reports
cannot be observed directly and must instead be estimated.
● Monetary amounts
- the Board concluded that it was unnecessary to also include non-
monetary amounts in the definition of accounting estimates
● Scope
- The Board concluded that the amendments should not change the scope
of IAS 8.
SLIDESMANIA
 OLD:
● The current IAS do not provide the
definition of accounting estimates.
● The definition of change in accounting
estimate result from new information or
new developments and, accordingly, are
not corrections of errors.
● Accounting policies are “the specific
principle bases, conventions, rules, and
practices applied by an entity in
preparing and presenting financial
statements”.
SLIDESMANIA
NEW:
● In the amended standard, it defines
Accounting Estimate as “ monetary
amounts in financial statements that are
subject to measurement uncertainty
● The Board concluded that it would be
helpful to retain this aspect of the
previous definition
● The board concluded that changing the
definition of accounting policies was
unnecessary.
 Effective date and transition
● The amendments become effective for annual reporting periods
beginning on or after 1 January 2023 and apply to changes in
accounting policies and changes in accounting estimates that
occur on or after the start of that period. Earlier application is
permitted.
SLIDESMANIA