New extracts from the ESMA database of IFRS decisions
In May 2022, the European Securities and Markets Authority (ESMA) published further extracts from its confidential database of enforcement decisions taken by European national enforcers.
On 2 March 2022, the amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates titled Definition of Accounting Estimates were endorsed by the European Commission for use in the European Union. The EU effective date is the same as the IASB’s effective date (annual periods beginning on or after 1 January 2023).
Amendments to IAS 8 were issued in February 2021. IAS 8 is amended to replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”.
The Board clarifies that a change in accounting estimate that results from new information or new developments is not the correction of an error. In addition, the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors.
We brought more information about these amendments to IAS 8 in our article IASB finalised amendments to IAS 8 regarding accounting estimates.