The Financial Reporting Standards Council (FRSC) has approved on April 14, 2021 the adoption of amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, Definition of Accounting Estimates, issued by the International Accounting Standards Board (IASB) in February 2021 as amendments to PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, Definition of Accounting Estimates.
- introduce a new definition of ‘accounting estimates’;
- clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors; and
- clarify how entities use measurement techniques and inputs to develop accounting estimates.
An entity shall apply these amendments to annual reporting periods beginning on or after January 1, 2023. Earlier application of these amendments is permitted.
The preface to the foregoing amendments can be accessed here.