IFRS Foundation Issues Guide on Accounting Policies

November 22, 2019

The IFRS Foundation has issued Guide to Selecting and Applying Accounting Policies — IAS 8.

This guide outlines the following three-step process companies can use to “determine their accounting policies when preparing IFRS financial statements”:

Step 1 — “Consider whether an IFRS Standard specifically applies to the transaction, other event or condition.”
Step 2 — “Consider whether IFRS Standards deal with similar and related issues.”
Step 3 — “Refer to and consider the applicability of the ‘Conceptual Framework for Financial Reporting.’”

The steps are accompanied by examples illustrating how they are applied.

For more information, see the press release on the IASB’s Web site.