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Hi Mike,
In Sep/Dec 2016 exam
Q 1
One of the audit risk was
Revenue reorganisation IFRS15
Group implement new requirement of IFRS15, revenue from contract first time.My questions is
Per IAS 8 This change in the accounting policies and change in the estimate
Does it require to make a change in retrospective or just change in the current year.Thanks in advance.
Here’s an extract from IAS 8 but also check out paragraphs IAS 8.24 and 8.25
“If a change in accounting policy is required by a new IASB standard or interpretation, the change is accounted for as required by that new pronouncement or, if the new pronouncement does not include specific transition provisions, then the change in accounting policy is applied retrospectively. [IAS 8.19]
Retrospective application means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied. [IAS 8.22]”
Is that OK?
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