08/07/2021 - EFRAG's Endorsement Advice on Definition of Accounting Estimates (Amendments to IAS 8)
EFRAG has completed its due process regarding Definition of Accounting Estimates (Amendments to IAS 8) and has submitted its Endorsement Advice Letter to the European Commission.
The Endorsement Advice Letter to the European Commission can be found here.
On 12 February 2021, the IASB issued Definition of Accounting Estimates (Amendments to IAS 8) (‘the Amendments’) which were initially issued as exposure draft ED/2017/5 Accounting Policies.
The Amendments revise IAS 8 to replace the definition of a change in accounting estimates with a definition of accounting estimates and provide other clarifications to help entities distinguish accounting policies from accounting estimates.
The Amendments are effective for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted.
EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet the technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation can be found in the letter to the European Commission and the accompanying appendices.
The Endorsement Advice Letter to the European Commission can be found here. EFRAG has also updated its Endorsement Status Report, which can be downloaded here on EFRAG's web page.
