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Kim Smith.
Kim Smith.-
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Noah098
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Hello ma’am hope you are back and doing great!
I wanted to understand if IAS 8 applies to all assets INCLUDING ASSETS WITH DEFINITE AND INDEFINITE USEFUL LIFE? I ask in this in the context of accounting estimates, which requires that at the end of each reporting period it should be assessed if circumstances exist to support the current useful life of asset or it should be revised.
Also am not sure if this evolution of useful at the end of each reporting period is a requirement of IAS 8 or IAS 16+IAS 38?
Kim Smith
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Thank you – yes – it was a really nice break!
IAS 8 deals only with accounting for CHANGES in accounting estimates – it states only in very general terms “An estimate may need revision if changes occur in the circumstances on which
the estimate was based or as a result of new information or more experience.”Other, more specific, IASs deal with the making/reviewing of accounting estimates e.g. IAS 16 requires residual value, useful life and depreciation method to be reviewed “at least at each financial year-end”.
Noah098
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