IASB amends IAS 1 and IAS 8

The International Accounting Standards Board (IASB) recently issued narrow-scope amendments to the following standards:

• International Accounting Standard (IAS) 1,  Presentation of Financial Statements, was amended to  require companies to disclose their material accounting policy information, rather than their significant accounting policies.
• International Financial Reporting Standard (IFRS) Practice Statement 2, Making Materiality Judgements, was amended to include guidance and examples on the application of the concept of materiality in making decisions about accounting policy disclosures.
• IAS 8,  Accounting Policies, Changes in Accounting Estimates and Errors,  was amended to introduce a definition of “accounting estimates” and to clarify how companies should distinguish changes in accounting policies from changes in accounting estimates.

The amendments to IAS 1 and IAS 8 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. Once an entity applies the amendments to IAS 1, it also is permitted to apply the amendments to IFRS Practice Statement 2.

This content was originally published on RSMUS.com.