AccountingPoliciesChangesinAccountingEstimatesandErrors幻灯片.pptVIP

F7 F7 F7 F7 F7 F7 F7 F7 F7 F7 F7 F7 F7 IAS8 Accounting Policies, Changes in Accounting Estimates and Errors Syllabus A2de * Accounting policy Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. If a standard applies to a transaction, follow that IAS or IFRS. In the absence of a standard, select a policy that maximises the relevance and reliability of the information presented. * Continued Required by IAS1 It is helpful to make financial information possess the following characteristics: relevance to the decision making needs of users reliability faithful representation substance over form neutrality prudence completeness * Continued Changes in accounting policies only if (a) is required by an IFRS; or (b) results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity’s financial position, financial performance or cash flows. They include the changes in recognition, measurement basis and presentation. * Continued *Two types of events which do not constitute changes in accounting policy the application of an accounting policy for transactions, other events or conditions that differ in substance from those previously occurring; and the application of a new accounting policy for transactions, other events or conditions that did not occur previously or were immaterial. Exception the initial application of the revaluation method for PPE and intangible asset is not treated as a change in accounting policy under IAS 8. * Continued Accounting treatment retrospective application to adjust against opening retained earnings in SOCIE, and to provide comparative information. prospective application if the cumulative effect of the change can not be determined. to recognise the effect of change in the current and future periods. * Continued If material, disclose the titl