EFRAG endorsement status report now reflects amendments to IAS 1 and IFRS Practice Statement 2 (Disclosure of Accounting Policies) and IAS 8 (Definition of Accounting Estimates)
19 February 2021
On 12 February 2021 the IASB issued amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements: Disclosure of Accounting Policies and amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates.
The amendments to IAS 1 require entities to disclose their material accounting policies rather than their significant accounting policies. To support this amendment, the IASB has also amended IFRS Practice Statement 2 to explain and demonstrate the application of the ‘four-step materiality process’ to accounting policy disclosures.
The IASB has amended IAS 8 to introduce a definition of ‘accounting estimates’ and provide other clarifications in order to help entities distinguish accounting policies from accounting estimates.
EFRAG has updated the EFRAG Endorsement Status Report to reflect the above change.
The updated EFRAG endorsement status report may be accessed here.