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  Accounting Policies Changes and Errors

Introduction to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

IAS 8 sets out the criterion for selecting and changing accounting policies and the suitable treatment for disclosing these policies. It also sets out the treatment for disclosing alterations in accounting estimates and for the rectification of errors.

Accounting policies

Accounting policies are the conventions, principles and rules employed to ready the financial statements.

Changes in accounting estimates

Managers are generally needed to make several estimates while preparing financial Statements.

Errors

The omissions or misstatements in the financial statements are termed as Errors.

IAS 10 Events after the Reporting Period

The key purpose of IAS 10 is to clarify while financial statements should be adjusted for events that occur after the reporting period (or accounting period).

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