When an entity
- Makes mistakes in their financial statements
- Decides to change their accounting policies, for e.g. going from Revaluation model to Cost model for PPE, or
- Re-estimates a useful life or residual value, amongst other estimates,
o These events will all trigger the requirements of IAS 8, and management will be obliged to consider its implications.
IAS 8’s requirements will be worked through in terms of the following:
• Selection and application of accounting policies
o Consistency and changes of accounting policies
o Disclosures related to changes in accounting policies
• Changes in accounting estimates and disclosures that accompany changes
• Errors and disclosures that are required because of discovering errors
