Please provide summary on Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
Please provide summary on Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors The objective of this Standard is to prescribe 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. The Standard is intended to enhance the relevance and reliability of an entity’s financial statements, and the comparability of those financial statements over time and with the financial statements of other entities. Disclosure requirements for accounting policies, except those for changes in accounting policies, are set out in Ind AS 1, Presentation of Financial Statements. This Standard shall be applied in selecting and applying accounting policies, and accounting for changes in accounting policies, changes in accounting estimates and corrections of prior period errors. The tax effects of corrections of prior period errors and of retrospective adjustments made to apply changes in accounting policies are accounted for and disclosed in accordance with Ind AS 12, Income Taxes.
Dear Friend > Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors Changes in accounting policies Changes in accounting policies made on adoption of a new standard are accounted for in accordance with the transition provisions (if any) within that standard. If specific transition provisions do not exist, a change in policy (whether required or voluntary) is accounted for retrospectively (that is, by restating all comparative figures presented) unless this is impracticable. Issue of new or revised standards not yet effective Standards are normally published in advance of the required implementation date. In the intervening period, where a new or revised standard relevant to an entity has been issued but is not yet effective, management discloses this fact. It also provides the known or reasonably estimable information relevant to assessing the impact the application of the standard might have on the entity’s financial statements in the period of initial recognition. Changes in accounting estimates An entity prospectively recognises changes in accounting estimates by including the effects in profit or loss in the period affected (the period of the change and future periods), except if the change in estimate gives rise to changes in assets, liabilities or equity. In this case, it is recognised by adjusting the carrying amount of the related asset, liability or equity in the period of the change. Errors Errors may arise from mistakes and oversights or misinterpretation of information. Errors discovered in a subsequent period are prior-period errors. Material prior-period errors are adjusted retrospectively (that is, by restating comparative figures) unless this is impracticable (that is, it cannot be done, after ‘making every reasonable effort to do so’). Thanks