- 2 Marks
FR – Nov 2016 – L2 – Q2b – Financial Reporting Standards and Their Applications
Identify the conditions under which it may be appropriate to change accounting policy in accordance with IAS 8.
Question
According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must select and apply its accounting policies consistently from one period to the next and among various items in the financial statements. However, an entity may change its accounting policies under certain conditions.
Required:
Identify the circumstances under which it may be appropriate to change accounting policy in accordance with the guidance given in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
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