FR – July 2025 – L2 – Q2c – IAS 8 Accounting Changes

Distinguishing accounting policies from accounting estimates under IAS 8.

Question

For each change below, justify whether it is a change in accounting policy or a change in accounting estimate under IAS 8.

Answer

(i) Revision of court case provision – Change in accounting estimate
(ii) Revision of useful life of PPE – Change in accounting estimate
(iii) Change from cost model to revaluation model – Change in accounting policy