1. To facilitate a clear understanding of the principles, facts and circumstances that determine changes in accounting policies, changes in accounting estimates and correction of errors.
2. To explain how the requirements enhance relevance and reliability of financial information and comparability and consistency of an entity’s financial statements.
3. To equip participants with the ability to apply the proper accounting treatment, with appropriate disclosures, to changes in accounting policies, changes in accounting estimates and correction of errors.

Participants will be able to: 

• Understand the criteria for the selection and application of accounting policies in accordance with FRS 8.
• Identify a change in estimate and a prior-period error.
• Distinguish a change in accounting policy, a change in accounting estimate and a correction of error.
• Apply the appropriate accounting treatment for change in accounting policy, change in accounting estimate and a correction of error.
• Be aware of the exceptions to retrospective application or restatement.
• Know the required disclosures to accompany the changes in the financial statements.
• Understand the impact of transitional requirements of revised or new standards.

Programme Outline 

• Scope and objective of FRS 8 
• Definitions
• Accounting policies 

              – Selection and application

              – Changes

• Retrospective application

              – Format

              – Comparatives

                    – Limitations

                    – Impracticability conditions

                    – Disclosure

                    – Principles underlying the retrospective application of policies

• Changes in accounting estimates Current and prospective adjustment

              – Changes in accounting estimates versus changes in policies

              – Disclosures

              – Interactions with IAS 1

              – Principles underlying the current and prospective adjustment  

• Correction of errors

              – Retrospective restatement

                    – Format

                    – Comparatives

              – Limitations 

                    – Impracticability conditions

                    – Disclosures

                    – Principles underlying the retrospective restatement of financial Statements

• Special considerations arising from implementation guidance

Intended For

A Foundation to Intermediate level programme targeted at both Accounting and Audit Professionals. Those who wish to achieve a deeper understanding in FRS 8 are encouraged to attend.