IASB publishes Exposure Draft on how to distinguish accounting policies from accounting estimates

Released 12 August 2017

The International Accounting Standards Board (IASB) has published for public consultation proposed narrow-scope amendments to International Accounting Standard (IAS) 8 Accounting Policies, Changes in Accounting Estimates and Errors.

The purpose of the proposed amendments is to help companies distinguish accounting policies from accounting estimates. The distinction is important because changes in accounting estimates often affect a company’s profit or loss, but changes in accounting policies generally do not.

The Board welcomes feedback on its view that the amendments will make the distinction clearer. The Exposure Draft Accounting Policies and Accounting Estimates (Proposed amendments to IAS 8) is open for comment until 15 January 2018.

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