Summary: IAS 8

Accounting Estimates Correctin of Errors Accounting Policy

Always adjusted prospectively Material Immaterial Material Immaterial

Adjust retrospectively Adjust prospectively Adjust retrospectively Adjust prospectively

Outline of All Adjustments

Correction of Error Change in Policy Change in Estimate
Statement of Profit and Loss:
- Header prior year → Restated P P O
- Disclosure on face of financials O O O
Statement of Financial Position
- Inlude figure for PY to the prior period P P O
- Header prior year → Restated P P O
Statement of Changes in Equity
- Reconciliation of opening retaned earnings (from
unadjusted opening balance to restated balance by P P O
adjusting for errors and changes in policies)
- Header prior year → Restated P P O
Notes to Financial Statements
- Brief description of 'what' P P P
- Explanation of 'why' O P O
- Comparitive header → Restated P P O
- Comparitive numbers are restated P P O
- Effect on each line item of FS including Basic and
Diluted EPS wherever affected
- current year O P P
- prior year P P O
- year before prior year P P O
- future year O O P
- Effect on opening retained earnings
IAS 8 - Estimates, Acc. Policies & Errors
Ahmed Raza Mir, FCA
Financial Accounting and Reporting I

- current year P P O
- prior year P P O