<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In this article, our main aim is to bring in discussion some of the most controversial points debated along the time on the use of the accounting estimates in financial reporting. More important, we have referred to the Exposure Draft recently closed for comment letters, which addressed some points that will follow to be transformed into several amendments to IAS 8. Our discussion is focused, especially on how professionals can make a clear distinction between changes in accounting estimates and changes in accounting policies. We try to underline the trinomial perspective of this subject, as the changes in accounting estimates impact, not only the financial statements, but can generate issues on auditing those estimates, or on using financial information output on the entity valuation models. Additionally, we try to emphasize the essential role of this distinction between changes in accounting estimates and changes in accounting policies.</p></abstract>

In this article, our main aim is to bring in discussion some of the most controversial points debated along the time on the use of the accounting estimates in financial reporting. More important, we have referred to the Exposure Draft recently closed for comment letters, which addressed some points that will follow to be transformed into several amendments to IAS 8. Our discussion is focused, especially on how professionals can make a clear distinction between changes in accounting estimates and changes in accounting policies. We try to underline the trinomial perspective of this subject, as the changes in accounting estimates impact, not only the financial statements, but can generate issues on auditing those estimates, or on using financial information output on the entity valuation models. Additionally, we try to emphasize the essential role of this distinction between changes in accounting estimates and changes in accounting policies.

Critical Analysis on the Amendments Discussed, Concerning Changes in Accounting Estimates

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

In this article, our main aim is to bring in discussion some of the most controversial points debated along the time on the use of the accounting estimates in...

Critical Analysis on the Amendments Discussed, Concerning Changes in Accounting Estimates

Published Online: May 16, 2019

Page range: 17 - 33

DOI: https://doi.org/10.2478/sbe-2019-0002

Keywords
IAS 8, estimation, IASB, mark-to-market, conceptual framework

© 2019 Valentin Burcă et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Critical Analysis on the Amendments Discussed, Concerning Changes in Accounting Estimates

Published Online: May 16, 2019

Page range: 17 - 33

DOI: https://doi.org/10.2478/sbe-2019-0002

KeywordsIAS 8, estimation, IASB, mark-to-market, conceptual framework

© 2019 Valentin Burcă et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
IAS 8, estimation, IASB, mark-to-market, conceptual framework