Ind AS 108: Accounting Policies#
Selection of Accounting Policies#
Entity selects policies that:
- Are relevant to decision-making
- Provide reliable financial information
- Are consistent with IFRS/Ind AS
Sources of Accounting Policies#
- Ind AS Standards
- Interpretations
- Industry-specific guidance
Changes in Accounting Policies#
Retrospective Application#
- Apply to prior periods
- Adjust opening balances of equity
- Restate comparative information
Prospective Application#
- Apply to current and future periods
- No adjustment to prior periods
Disclosures#
- Nature of change
- Reason for change
- Amount of adjustment
- Restated comparative amounts
Changes in Accounting Estimates#
Treatment#
- Recognized prospectively
- Affects current period and future periods
- No restatement of prior periods
Disclosure#
- Nature of change
- Effect on current period
- Expected effect on future periods
Correction of Errors#
Prior Period Errors#
- Material errors from prior periods
- Corrected by restating comparative amounts
- Adjust opening equity if material
Disclosure#
- Nature of prior period error
- Amount of correction
- Restated comparative amounts