Today, the IASB issued an exposure draft with proposed narrow-scope amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
The proposed amendments are expected to help companies distinguish accounting policies from accounting estimates.
According to the IASB new release announcing the proposed amendments, “the distinction between accounting policies and accounting estimates 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.
Comments on the proposed amendments must be submitted to the IASB no later than January 15, 2018.