Aasb 108ias 8 provides for the recognition and

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AASB 108/IAS 8 provides for the recognition and disclosure of changes in accounting estimates and their effects on the financial statements. 16
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Errors Prior period errors: Paragraphs 41–49 of AASB 108/IAS 8 consider the treatment of errors made by an entity in the preparation of its financial statements. 17
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Errors Prior period errors: Omissions from, and other misstatements in, the entity’s financial statements for one or more previous reporting periods that are discovered in the current period. Such errors can occur for a number of reasons, including calculation errors, mistakes in applying accounting policies, oversights or misinterpretation of facts, and fraud. 18
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Errors Retrospective restatement: Used for the correction of a material error that occurred in a previous period in the first financial statements issued after the discovery of the error. 19
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Impracticability in respect of retrospectiventing policy changes or correction of errors The terms ‘retrospective application’ and ‘retrospective restatement’ are defined in paragraph 5 of AASB 108/IAS 8: Retrospective application is applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied. 20
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Impracticability in respect of retrospective adjustments for accounting policy changes or correction of errors The terms ‘retrospective application’ and ‘retrospective restatement’ are defined in paragraph 5 of AASB 108/IAS 8: Retrospective restatement is correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occurred. 21
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Impracticability in respect of retrospective adjustments for accounting policy changes or correction of errors Impracticable refers to the inability of a company to apply a requirement of AASB 108/IAS 8 after making every reasonable effort to do so. For example, in some circumstances the data may not have been collected in prior periods to adjust comparative information in a way that allows retrospective application of a new accounting policy. 22
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Materiality Materiality is based on qualitative as well as quantitative factors. Materiality is also entity-specific — what is material to one entity may not be material to another. The IASB did not see it appropriate to specify quantitative thresholds. 23
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Events occurring after the end of the reporting date The financial statements are to be prepared on the basis of conditions which exist at the end of the reporting period.
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