The purpose of IAS 8 is to prescribe the criteria for selecting and changing accounting policies, as well as the accounting for and disclosure of changes in accounting policies, changes in accounting estimates and bug fixes. IAS 8 is designed to enhance the significance and reliability of an entity's financial statements, and the comparability of those financial statements over time and with the financial statements of other entities.

Accounting policy are the specific principles, bases, conventions, rules and practices that a company uses to prepare and present its financial statements.

When a particular IFRS is applied to a transaction, other event or condition, the accounting policy or its provisions applicable to that item shall be determined by applying this IFRS.

In the absence of a specific IFRS applicable to a transaction, other event or condition, management must use its judgment in developing and applying accounting policies to generate information that:

relevant to the needs of users when making economic decisions;

2) reliable in the sense that the related financial statements:

faithfully represents the financial condition, financial results of operations and the movement Money companies;

reflects the economic content of events and operations, and not just their legal form;

neutral, i.e. free from bias;

prudent;

is complete in all material respects.

A company is only required to change its accounting policy when the change:

1) is required by any IFRS, or

2) results in the financial statements providing reliable and more meaningful information about the effects of transactions, other events or conditions on the entity's financial position, financial performance or cash flows.

A change in accounting policy should be applied retrospectively, unless it is impracticable to determine either the effect of the change in a particular period or its cumulative effect. In this case, the company is obliged to adjust the opening balance of each affected component equity for the earliest period presented and other related amounts disclosed for each prior period presented, as if the new accounting policy had always been applied.

Change in accounting estimate is an adjustment book value asset or liability, or the amount of periodic consumption of an asset that occurs as a result of valuing current state assets and liabilities, and their expected future benefits and liabilities. Changes in accounting estimates are the result of obtaining new information or the occurrence of new circumstances and, accordingly, do not constitute error corrections.

As a result of the uncertainties inherent in business activities, many financial statement items cannot be accurately calculated, but can only be estimated. Evaluation involves judgments based on the latest available, reliable information. For example, you may need to evaluate:

bad debts;

inventory obsolescence;

fair value financial assets or financial obligations;

useful lives or the expected pattern of obtaining economic benefits from depreciable assets;

warranty obligations.

The use of sound accounting estimates is an important part of the preparation of financial statements and does not make them less reliable.

The effect of a change in an accounting estimate shall be recognized prospectively by including it in profit or loss:

– in the period in which the change occurred, if it only affects that period, or

- in the period when the change occurred, and in future periods if it affects both.

Errors of previous periods are omissions or misstatements in an entity's financial statements for one or more prior periods that result from the failure or misuse of reliable information that:

was available when the financial statements for those periods were authorized for issue, and

is such that it could reasonably be expected to be obtained and taken into account in the preparation and presentation of these financial statements.

Such errors include the consequences of inaccuracies in calculations, errors in the application of accounting policies, underestimation or misinterpretation of facts, and fraud.

The Company is required to correct material prior period errors retrospectively, unless it is impracticable to determine either the effect of that error on a particular period or its cumulative effect. Errors are corrected in the first set of financial statements authorized for issue after they are discovered by:

the restatement of comparative amounts for the prior period(s) presented in which the error occurred, or

recalculation of opening balances of assets, liabilities and equity for the earliest prior period presented where the error occurred before the earliest prior period presented.

The main objective of IFRS 8 "Accounting Policies, Changes in Accounting Policies and Errors" is to establish criteria according to which the methods for recording and reporting changes in the company's accounting policies, accounting estimates, and errors are determined. The new version of the standard was adopted on December 18, 2003 and is effective from January 2005. This means that all changes in the standard must be applied not only to the 2005 accounts, but also to the 2004 comparatives. Together with the revised IFRS 8, the use of SIC 2 Consistency Principle - Capitalization of Borrowing Costs and SIC 18 Consistency Principle - Alternative Methods are mandatory.

The new edition of the standard, in order to unify the principles of reporting errors, does not allow the use of an “alternative” method of recording errors in previous periods in accounting, which involved adjusting data on net profit or loss of the current period without correcting information for previous periods. The concept of "fundamental error" is also excluded.

ki” (in the previous edition of the standard, errors identified in the current period were recognized as fundamental, as a result of which financial statements for one or more prior periods could not be considered reliable at the time of issue).

Personal experience

Sergey Moderov,department head financial accounting according to international standards of the Institute of Entrepreneurship Problems (St. Petersburg) The reduction in the number of acceptable accounting methods, namely the exclusion of the “alternative” method of recording errors, is a consequence of the convergence of IFRS and US GAAP. In addition, this will ensure a greater degree of comparability of financial statements for several periods.

Formation of accounting policy

According to IFRS accounting policy is a document containing the specific principles, methods, procedures, rules and practice of applying IFRS adopted by the company for the preparation and presentation of financial statements.

In the absence of an appropriate international financial reporting standard that determines the accounting procedure for a particular financial transaction economic activity, the company should be guided by its own opinion in the formation of accounting principles, based on the provisions and concepts of IFRS.

IFRS 8 in such a situation prescribes the following actions (each subsequent is performed if the previous one does not produce results):

1. Review standards and existing interpretations of standards that are related to similar operations.
2. Use the principles and provisions for the reflection of assets, liabilities, income and expenses, which are defined in the introductory chapter of IFRS “Framework for the Preparation and Presentation of Financial Statements”.
3. Refer to recent statements by government national accounting and reporting authorities that use an approach similar to the framework principles. You can also use any literature that highlights accounting issues and established industry practices. However, this should not be inconsistent with IFRS and the framework principles.

Personal experience

Sergey Moderov In practice, I had to deal with situations where international financial reporting standards did not contain the necessary guidance on some accounting items. This concerned accounting in companies extracting minerals. IFRS does not have a specialized standard for the extractive industries, there is only IFRS (IFRS) 6 “Exploration and Evaluation mineral resources". However, this standard does not answer all questions regarding the accounting of licenses and other intangible assets in the extractive industry, as well as the issue of valuation of the assets of an extractive company. In practice, when developing an accounting policy in accordance with IFRS 1 “Presentation of Financial Statements” and the principles of international standards, it was necessary to use the provisions of Russian standards accounting, as well as the relevant US GAAP standards, which was included in the accounting policy.

Denis Davidko,deputy CEO on corporate investments and capital markets JSC " Open Investments" (Moscow) In our practice, there were no such transactions for which accounting principles are not defined in international financial reporting standards. IFRS, unlike Russian standards, contain principles that cover the entire spectrum business transactions, assets and liabilities of the enterprise. And even if there is no specific mention of whether or not

other object of accounting, then, relying on the principles and approaches set forth in the standards, and interacting with the auditor, any professional accountant or the controller can always develop accounting rules. It seems to me that difficulties can arise only in the classification of accounting objects, but not in the development of accounting principles reflected in accounting policies.

Having chosen an appropriate accounting policy, an entity must apply it consistently across similar transactions and events. It is important for users of financial statements to be able to compare financial data across multiple reporting periods in order to determine trends and a company's financial position, as well as evaluate a company's performance and ability to generate cash flows.

Accounting policy changes

In accordance with IFRS, adjustments can be made to accounting policies in the following cases:

— the requirements of the standards or their interpretations have been changed;

- Changes in accounting policies will reflect the financial position of the enterprise, the results of its activities and cash flows more reliably.

Personal experience

Denis Davidko Companies due to changes in the business environment are forced to adjust their accounting policies quite often. But this situation is absolutely normal, and the quality of reporting will not suffer from this. It is important to justify the reasons for such changes and explain them to the end users of the financial statements.

Igor Dmitriev,Senior Specialist, International Projects Department, Baker Tilly Rusaudit (Moscow) As our experience shows, the application of IFRS 8 does not currently cause any particular difficulties. The standard itself is quite specific and not contradictory. In addition, the practice of applying IFRS 8 in our country is still limited. Most enterprises make their financial statements under IFRS for one to three years. The operating conditions of such enterprises have not yet had time to change so much that it was necessary to change the accounting policy or accounting estimates.

Extracts from the accounting policy of the Norilsk Nickel Mining and Metallurgical CompanyThe sections of the accounting policy are given, which give an idea of ​​what is included in the content of the accounting policy of the enterprise in accordance with the requirements of IFRS.

1. Method of consolidation.

2. Measurement currency and presentation currency.

3. Indicators of the balance sheet and income statement, expressed in foreign currency.

4. Fixed assets.

5. Capital construction in progress.

6. Cost reduction.

7. Expenses for research and exploration work.

8. Inventory.

9. Financial instruments.

10. Leasing of metals and repurchase agreements.

11. The cost of attracting borrowed funds.

12. Reserves.

13. Employee benefits.

14. Own shares redeemed from shareholders.

15. Taxation.

16. Revenue recognition.

17. Contracts for the sale of goods.

18. Operating lease.

19. Dividends declared.

20. Information on segments.

21. State grants.

22. Expenses for the decommissioning of fixed assets.

23. Current costs of environmental restoration.

If the accounting policy adjustment is caused by new requirements of the standards, then the changes in the financial statements should be reflected in accordance with the provisions on transition period contained in new version IFRS 8. Otherwise, changes in accounting policies are reflected in the financial statements of previous periods as if the new accounting policy had always been applied (retrospective approach). At the same time, the opening balance of retained earnings is corrected and the comparative indicators given in the financial statements are recalculated. If a retrospective recalculation of indicators for the previous period seems unjustified (significant adjustment costs), then it is allowed to make changes only to the reporting of the current period and provide the necessary clarifications in the appendix to the financial statements.

Example 1

Company "A" began the development of a new production line on January 1, 2001 and all costs associated with the launch of the line, in accordance with IAS 16 Property, Plant and Equipment and IAS 38 " Intangible assets” (it was assumed that the introduction of the new line would increase the value of the company's goodwill) was reflected as investments in property, plant and equipment and intangible assets. In 2004, the directors of the company decided that this year and in the future, the costs of developing production should be recognized as operating expenses in the profit and loss account. This change was due to the fact that the future economic efficiency investment has been called into question. Financial information before making changes to the accounting policy is given in table. 1.

The statement of changes in equity for 2003 included the following information (in thousands of US dollars): — retained earnings previous years - 3040;

- profit of the reporting period - 2150;

- retained earnings at the end of the reporting period - 5190.

Due to a change in the accounting policy of the enterprise, it is required to make adjustments to the reporting of past periods, which are subject to this change, as if the new accounting policy had been applied in previous periods (writing off all development costs as current expenses in the profit and loss account). Therefore, it is necessary to adjust (increase) the costs for current expenses of past periods:

$400,000 for 2001;

340 thousand US dollars for 2002;

350 thousand US dollars for 2003. Thus, the company's retained earnings at the end of 2004 should be $1,090,000 less than previously reported earnings of $5,190,000 (see Table 2).

When making changes to the company's accounting policy, it is necessary to disclose the following data on the changes that have occurred in the financial statements:

- the name of the standard or PKI that led to changes in accounting policies;

— the nature of the changes in accounting policies;

— description of the principles for the implementation of the transition to a new accounting policy;

- the amount of adjustment for the current and previous periods;

- a description and explanation of how changes in accounting policies will be made to the statements in cases where an adjustment to previous periods is unjustified.

Table 1 Costs for the development of a new production line, thousand US dollars

table 2 Adjusted statement of changes in equity for 2004, US$ thousand How to reflect changes in accounting estimates

Due to the uncertainty that is always present in the course of the financial and economic activities of an enterprise, there are many items in the financial statements that cannot be accurately estimated. In valuing such items, the latest and best information available at the valuation date is used. Examples of such articles might be:

Provisions for doubtful and overdue receivables;

Useful life of fixed assets;

Market value of investments.

According to IFRS 8, the revision of accounting estimates is not considered as an error; accordingly, the statements of past periods will not be subject to adjustments. The profit (loss) of the company must be adjusted for the effect (increase or decrease in the value of assets, expenses and income) from the revision of accounting estimates. Changes in accounting estimates are reflected in the current and future reporting periods if the change affects more than one period. For example, changes in the estimate of the allowance for doubtful and uncollectible debts will only apply to the current reporting period. Changes in duration useful life services

fixed assets will be reflected by adjusting the depreciation rates in the current and subsequent periods until the end of the life of the fixed asset. The nature and financial effect of changes in accounting estimates should be disclosed in the financial statements.

Recognition and reflection of mistakes

Errors in accordance with IFRS are mathematical miscalculations identified in the current period, incorrect or inconsistent application of the company's accounting policies, as well as deliberate deception.

In practice, it is difficult to distinguish between errors and changes in accounting estimates. For this

Table 3 Profit and loss statement of company "B", thousand US dollars

it is required to determine what the cause of the alleged errors is: a misinterpretation of the available information or a changed view of the event (for example, a new specialist is reporting). Although the solution to this issue cannot be unambiguous, in most borderline cases it is more reasonable to reflect adjustments as changes in accounting estimates.

An error in the reporting of the previous period must be corrected as soon as possible. new reporting companies. At the same time, comparative data in the current financial statements should also be adjusted. If the error was discovered prior to the very first reporting, adjustments are made to the opening balances of assets, liabilities and equity. Correction of errors of previous years in the current financial statements is not carried out, since the error should already be corrected in the statements of previous periods. For identified errors, the entity is required to disclose the nature of the error and the amount of the adjustment for each of the periods.

Example 2

In preparing the preliminary version of the financial statements for 2004, company "B" discovered an error in estimating the balance of inventories at the end of the previous period. This led to a reduction in the cost products sold and, consequently, an increase in profit before tax. Accordingly, in order to accurately reflect the data on financial condition company, cost of goods sold was increased by $5 million in 2003 and decreased by that amount in 2004. With this in mind, the financial results and the amount of income tax (rate 24%) were also revised (see Table 3).

Differences between IFRS and RAS

A significant difference between IFRS 8 and Russian accounting standards is that RAS does not imply adjustments to statements for previous periods in the event of a change in accounting policy or the discovery of errors.

Personal experience

Evgeny Samoilov,CEO of Baker Tilly Rusaudit (Moscow) Various RAS and orders of the Ministry of Finance of Russia mention the issues considered in IFRS 8, but there is no document summarizing all the issues. In addition, there are significant differences between IFRS and Russian system accounting in terms of reflecting errors. IN Russian practice all errors of past years, regardless of their materiality, are reflected in the statements of the period in which they were discovered. In accordance with PBU 9/99 "Income of the organization" and RAS 10/99 "Expenses of the organization" profits and losses of previous years, identified in reporting year, are recognized accordingly non-operating income And non-operating expenses. Practice shows that for some enterprises, the profit of the reporting year, received in accordance with Russian accounting standards, may consist of more than half of the profits of previous years, identified in the reporting year (or vice versa - most of the losses were formed in previous years). IN IFRS principle temporal certainty of the facts of economic activity is one of the fundamental. IFRS 8 requires retrospective reflection of reporting data in case of revealing fundamental (material) errors.

Sergey Moderov

In Russian accounting, the analogue of IFRS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, as well as IFRS 1 “Presentation of Financial Statements” is PBU 1/98 “Accounting Policies of an Organization”. The main difference between RAS and IFRS lies in different approaches to accounting policies.

In Russian accounting, accounting policies are often referred to as a "necessary evil", still drawing it up according to a common template. The formation of an accounting policy in accordance with IFRS is a laborious process that requires the active participation of top management, since it is important to take into account the strategic goals of the company. IFRS are the rules of reporting, not accounting, so the accountant forms the accounting himself, creating rules, the implementation of which will allow you to “collect information” for financial reporting.

Target

1. The purpose of this Standard is to establish criteria for selecting and changing accounting policies, together with accounting for and disclosing information about changes in accounting policies, changes in accounting estimates and adjustments for errors. This Standard intends to improve the quality of an entity's financial statements with respect to the relevance, reliability and comparability of those financial statements over time and with the financial statements of other entities.

2. Disclosure requirements for accounting policies, other than those relating to changes in accounting policies, are set out in IAS 1 "Presentation of Financial Statements".

Scope of application

3. This Standard shall be applied in selecting and applying accounting policies and accounting for changes in accounting policies, changes in accounting estimates and adjustments for prior period errors.

4. Tax implications adjustments for prior period errors and retrospective adjustments made to apply changes in accounting policies are accounted for and disclosed in accordance with IAS 12 "Income Taxes".

Definitions

5. The following terms are used in this standard with the meanings specified:

Accounting policies are the specific principles, bases, conventions, rules and practices adopted by an entity for the preparation and presentation of financial statements.

A change in an accounting estimate is an adjustment to the carrying amount of an asset or a liability, or the amount of periodic consumption of an asset, that results from an assessment of the current state of the assets and liabilities and the expected future benefits and responsibilities associated with the assets and liabilities. Changes in accounting estimates arise as a result of new information or developments and, therefore, are not adjustments for errors.

International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the Board of the International Financial Reporting Standards Committee (IASB). They consist of:

(a) International Financial Reporting Standards (IFRS);

(b) International Financial Reporting Standards (IAS); And

(c) Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC) or the formerly Standing Interpretations Committee (SIC).

Material - Omissions or misstatements of items are considered material if, individually or in the aggregate, they could influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omitted information or misstatement assessed in the context of the circumstances. The size or nature of the article, or a combination of the two, may be a determining factor.

Prior period errors are omissions or misstatements in an entity's financial statements for one or more periods that result from the failure to use or misuse of reliable information that

(a) was available when the financial statements for those periods were authorized for issue; And

(b) could reasonably be expected to be obtained and considered in the course of preparing and presenting these financial statements.

Such errors include the results of mathematical miscalculations, errors in the application of accounting policies, inattention or misinterpretation of facts, and fraud.

Retrospective application is the application of a new accounting policy to transactions, other events and conditions as if that accounting policy had always been used in the past.

A retrospective restatement is an adjustment to the recognition, measurement and disclosure of amounts in financial statements as if the prior period error had never occurred.

Almost impossible. It is practically impossible to apply a requirement when an enterprise cannot apply it despite all realistic attempts to do so. For certain prior periods, it is practically impossible to apply a change in accounting policy retrospectively or to recalculate retrospectively to correct an error if:

(a) the effect of retrospective application or retrospective restatement cannot be determined;

(b) retrospective application or retrospective restatement requires assumptions about what management's intentions were in that period; or

(c) retrospective application or retrospective restatement requires significant estimates and it is not possible to objectively identify information about those estimates that

(i) provides details of the conditions that existed at the date(s) on which those amounts are to be recognized, measured or disclosed; And

(ii) would have been available when the financial statements for that period were authorized for issue,

from other information.

The prospective application of a change in accounting policy and recognizing the effect of a change in accounting estimates, respectively, is:

(a) the application of the new accounting policy to transactions, other events and conditions that occur after the date on which the policy is changed; And

(b) recognizing the effect of the change in accounting estimates in the current and future periods affected by the change.

6. Assessing whether an omission or misstatement of information could influence the economic decisions of users of financial statements, and therefore be material, requires consideration of the characteristics of those users. Paragraph 25, Framework for the Preparation and Presentation of Financial Statements, states that “users are expected to have sufficient knowledge of the business and economic activity accounting and a willingness to study information with due diligence.” Therefore, the assessment must take into account how reasonably it can be expected that the economic decisions of users with such characteristics will be influenced.

Accounting policy

Selecting and applying accounting policies

7. When a particular IFRS is applied to a transaction, other event or condition, the accounting policy or its provisions applicable to that item shall be determined by applying this IFRS.

8. IFRSs set out accounting policies that, in the opinion of the IASB, result in financial statements that contain relevant and reliable information about transactions, other events and the conditions to which they apply. In cases where the effect of applying an accounting policy is not significant, its application is not mandatory. However, it is not acceptable to allow minor deviations from International Financial Reporting Standards (IFRS) or to leave such deviations uncorrected for presentation purposes. financial position, financial results or cash flow of the enterprise in a certain way.

9. IFRSs are accompanied by guidance to help entities apply the requirements of those standards. All such guidance documents indicate whether it is an integral part of IFRS. Guidance, which is an integral part of IFRS, is mandatory. The guidance, which is not an integral part of IFRS, does not contain financial reporting requirements.

10. In the absence of a specific IFRS applicable to a transaction, other event or condition, management must use its own judgment in developing and applying accounting policies to generate information that

(a) is relevant to users in making economic decisions; And

(b) reliable in that the financial statements:

(i) fairly represent the financial position, financial results and cash flows of the entity;

(ii) reflects the economic substance of transactions, other events and conditions, and not just their legal form;

(iii) is neutral, that is, free from bias;

(iv) is conservative; And

(v) is complete in all material respects.

11. When making the judgment described in paragraph 10 , management should refer to and consider the applicability of the following sources in descending order:

(a) IFRS requirements that address similar and related matters;

(b) definitions, recognition criteria and concepts for measuring assets, liabilities, income and expenses presented in the Concept.

12. When making the judgment described in paragraph 10 , management may also consider the most recent regulations of other standard-setting bodies that use a similar framework for developing accounting standards, other accounting literature and industry accepted practice, to the extent that they do not conflict with sources in point 11 .

The sequence of accounting policies

13 An entity shall select and apply accounting policies consistently for similar transactions, other events and conditions, unless an IFRS specifically requires or permits the classification of items into categories for which different accounting policies may be appropriate. If any IFRS requires or permits such categorization, then appropriate accounting policies should be selected for each categorization and applied consistently.

Changes in accounting policy

14. An entity shall make changes to an accounting policy only if the change:

(a) required by any IFRS; or

(b) will result in the financial statements providing reliable and more relevant information about the effect of transactions, other events or conditions on the entity's financial position, financial performance or cash flows.

15. Users of financial statements need to be able to compare financial reports enterprises of different periods in order to determine trends in its financial position, financial results and cash flows. Thus, the same accounting policy is applied during each period and from one period to the next, unless a change in accounting policy meets one of the criteria in paragraph 14 .

16. The following actions are not changes in accounting policies:

(a) the application of an accounting policy for transactions, other events or conditions that are different in substance from transactions, other events or conditions that occurred in the past; And

(b) applying a new accounting policy to transactions, events or conditions that did not previously occur or were immaterial.

17. Initial application of the asset revaluation policy under IAS 16 "Fixed assets" or IAS 38 "Intangible assets" is a change in accounting policy that is treated as a revaluation in accordance with IAS 16 or IAS 38 and not in accordance with this standard.

18. Items 19 - 31 do not apply to changes in accounting policies described in paragraph 17.

Applying changes to accounting policies

19. Except as prescribed paragraph 23:

(a) an entity shall account for changes in accounting policies that result from the initial application of an IFRS in accordance with the specific transitional provisions, if any, in that IFRS; And

(b) when an entity changes an accounting policy upon initial application of IFRSs that do not prescribe specific transitional provisions that apply to that change, or voluntarily changes an accounting policy, it shall apply the change retrospectively.

20 For the purposes of this Standard, early adoption of IFRSs is not a voluntary change in accounting policy.

21. In the absence of a specific IFRS that applies to a transaction, other event or condition, management may, in accordance with paragraph 12 apply accounting policies from the most recent regulations of other standard-setting bodies that use a similar concept to develop accounting standards. If, following a change in such normative document, the entity decides to change an accounting policy, that change is accounted for and disclosed as a voluntary change in accounting policy.

Retrospective application

22. Except as prescribed paragraph 23 when changes in accounting policies are applied retrospectively in accordance with paragraph 19(a) or (b) , an entity shall adjust the opening balance of each affected component of equity for the earliest period presented and other comparatives disclosed for each prior period presented as if the new accounting policy had always been applied.

Restrictions on retrospective application

23. When retrospective application is required paragraph 19(a) or (b) , a change in accounting policy should be applied retrospectively, unless it is impracticable to determine the effect attributable to a particular period or the cumulative effect of the change.

24 When it is impracticable to determine the effect of a change in accounting policy relating to a particular period on the comparative information of one or more prior periods presented, an entity shall apply the new accounting policy to the carrying amounts of assets or liabilities at the beginning of the earliest period for which retrospective application is practicable. feasible and which may be the current period, and make appropriate adjustments to the opening balance of each affected component of equity for that period.

25 When it is not practicable to determine the cumulative effect at the beginning of the current period from the application of a new accounting policy to all prior periods, an entity shall adjust comparative information to apply prospectively the new accounting policy from the earliest date that application is practicable.

26 When an entity applies a new accounting policy retrospectively, it applies it to comparative information for prior periods as far back as practicable. Retrospective application to a prior period is not practicable unless it is practicable to determine the cumulative effect on the amounts in the statement of financial position at both the beginning and the end of the period. The amount of the adjustment relating to periods before those presented in the financial statements is credited to the opening balance of each affected component of equity in the earliest period presented. Usually retained earnings are adjusted. However, the adjustment may also relate to another component of equity (for example, to comply with the requirements of an IFRS). Any other information about prior periods, such as summaries of prior period financial information, is also adjusted as far back as practicable.

27. When retrospective application by an entity of a new accounting policy is impracticable, since it cannot determine the cumulative effect of applying an accounting policy for all previous periods, in accordance with paragraph 25 an entity applies the new accounting policy prospectively from the earliest period from which application is practicable. Therefore, the entity does not account for the portion of the cumulative adjustment to assets, liabilities and equity that arises before that date. A change in accounting policy is permitted even if the prospective application of the policy for any prior period is impracticable. When it is impracticable to apply a new accounting policy to one or more prior periods, the paragraphs 50 - 53 .

Information disclosure

28 If the initial application of an IFRS has an impact on the current or prior period, would have such an impact, except to the extent that it is impracticable to determine the amount of the adjustment, or could have an impact on future periods, an entity shall disclose:

(a) the title of this IFRS;

(b) where applicable, the fact that changes in accounting policies are made in accordance with the transitional provisions of this IFRS;

(c) the nature of the change in accounting policy;

(d) where applicable, a description of the transitional provisions;

(e) where applicable, transitional provisions that may have an impact on future periods;

(f) the amount of the adjustment for the current period and for each period presented, to the extent practicable:

IAS 33 "Earnings per share" applies to the entity;

(g) the amount of the adjustment relating to periods prior to those presented, to the extent practicable; And

(h) if the retrospective application required paragraph 19(a) or (b) is impracticable for a particular prior period or periods before those presented, the circumstances that led to the existence of such a condition, and a description of how and from when the change in accounting policy was applied.

29. If a voluntary change in accounting policy affects the current period or a prior period, would have an effect in that period, except to the extent that it is impracticable to determine the amount of the adjustment, or could have an effect in future periods, an entity shall disclose:

(a) the nature of the change in accounting policy;

(b) the reasons why applying the new accounting policy provides reliable and more relevant information;

(c) the amount of the adjustment for the current period and for each period presented, to the extent practicable:

(i) for each financial statement item affected by the error; And

(ii) for basic and diluted earnings per share, if IAS 33 applies to the enterprise;

(d) the amount of the adjustment relating to periods before those presented, to the extent practicable; And

(e) if retrospective application is impracticable for a particular prior period or periods before those presented, the circumstances that led to the existence of that condition and a description of how and from when the change in accounting policy was applied.

This disclosure is not required to be repeated in the financial statements of subsequent periods.

30 Where an entity has not started applying a new IFRS that has been issued but is not yet effective, it shall disclose the following information:

(a) that fact; And

(b) known or reasonably estimable information that is relevant to assessing the likely effect of applying the new IFRS on the entity's financial statements in the period of initial application.

31. In accordance with paragraph 30 an entity should consider disclosing:

(a) the name of the new IFRS;

(b) the nature of the forthcoming change or changes in accounting policies;

(c) the date from which the application of IFRSs is required;

(d) the date from which the entity plans to initially apply IFRSs; And

(e) do one of two things:

(i) discussing the expected impact of the initial application of IFRSs on the entity's financial statements; or

(ii) statements that such impact is unknown or cannot reasonably be estimated.

Changes in accounting estimates

32. As a result of the uncertainties inherent in business activities, many items in financial statements cannot be measured accurately, but can only be estimated. Estimates involve judgments based on the most recent, available and reliable information. For example, estimates may be required:

(a) bad debts;

(b) inventory obsolescence;

(c) fair value financial assets or financial liabilities;

(d) the useful lives or expected pattern of consumption of future economic benefits embodied in depreciable assets; And

(e) warranties.

33. The use of sound accounting estimates is an important part of the preparation of financial statements and does not reduce their reliability.

34. An estimate may need to be revised if the circumstances on which it was based change or as a result of new information or experience. By its nature, the revision of an accounting estimate is irrelevant to prior periods and does not constitute an adjustment to an error.

35. The applied change in the basis of estimate is a change in accounting policy and not a change in an accounting estimate. When it is difficult to distinguish a change in accounting policy from a change in an accounting estimate, it is treated as a change in an accounting estimate.

36. Effect of a change in an accounting estimate, other than the change to which it applies paragraph 37 , shall be recognized prospectively by including in profit or loss:

(a) the period in which the change took place, if it only affects that period; or

(b) the period in which the change took place and future periods if it affects both that period and future periods.

37. To the extent that changes in accounting estimates cause changes in assets and liabilities or relate to an equity item, changes in accounting estimates should be recognized by adjusting the carrying amount of the related asset, liability or equity item in the period of change.

38. Prospective recognition of the effect of a change in an accounting estimate means that the change is applied to transactions, other events and conditions from the date of the change in the estimate. A change in an accounting estimate can only affect profit or loss in the current period or current and future periods. For example, a change in an estimated amount of bad debts affects profit or loss in the current period only and is therefore recognized in the current period. However, a change in the estimated useful life or the expected pattern of consumption of the economic benefits embodied in a depreciable asset affects the depreciation expense in the current period and in each future period of the asset's remaining useful life. In both cases, the effect of the change relating to the current period is recognized as income or expense in the current period. The effect of the change on future periods, if any, is recognized as income or expense in those future periods.

Information disclosure

39 An entity shall disclose the nature and amount of changes in accounting estimates that have an effect in the current period, or those that are expected to have an effect in future periods, except to disclose the effect for future periods when it is impracticable to estimate the effect.

40. If the magnitude of the impact on future periods is not disclosed because an estimate is not practicable, then an entity shall disclose that fact.

Mistakes

41. Errors can occur in recognizing, measuring, presenting or disclosing elements of financial statements. Financial statements do not match international standards financial statements (IFRS) if they contain material or immaterial errors committed in order to achieve a certain presentation of the entity's financial position, financial results or cash flows. Potential current period errors discovered in the same period are corrected before the financial statements are authorized for issue. However, sometimes material errors remain undetected until subsequent periods, at which time prior period errors are corrected in the comparative information presented in the financial statements for that subsequent period. paragraphs 42 - 47).

42. Except as prescribed paragraph 43 , an entity shall retrospectively correct material prior period errors in the first set of financial statements authorized for issue after they are discovered by:

(a) restate comparatives for the prior period(s) presented in which the error occurred; or

(b) if the error was made before the earliest period presented, restating the opening balances of assets, liabilities and equity for the earliest period presented.

Restrictions on retrospective restatement

43. A prior period error should be corrected by retrospective restatement, unless it is not practicable to determine the effect attributable to a particular period or the cumulative effect of the error.

44 When it is not practicable to determine the effect of a period error on the comparative information for one or more of the periods presented, an entity shall restate the opening balances of assets, liabilities and equity for the earliest period for which retrospective restatement is practicable (this period may be current).

45 When it is not practicable to determine the cumulative effect of an error over all prior periods as at the beginning of the current period, an entity shall restate comparative information to correct the error prospectively from the earliest date practicable.

46. ​​The adjustment of a prior period error is not included in profit or loss for the period in which the error was discovered. Any prior period information presented, including historical summaries of financial information, is restated as far back as practicable.

47. When it is practically impossible to determine the amount of an error (for example, an error in applying an accounting policy) for all previous periods, in accordance with paragraph 45 an entity shall restate comparative information prospectively from the earliest date practicable. Therefore, the entity does not account for the portion of the cumulative translation of assets, liabilities and equity that arises before that date. When it is not practicable to correct the error for one or more previous periods, the provisions of the paragraphs 50 - 53 .

48. A distinction should be made between adjustments to errors and changes in accounting estimates. The latter are, by their nature, approximations that may need to be revised as they become available. additional information. For example, other income or loss recognized as a result of the outcome of a contingent business event is not an adjustment for an error.

(c) the amount of the adjustment at the beginning of the earliest period presented; And

(d) if retrospective restatement is impracticable for a particular prior period, the circumstances that led to the existence of the condition and a description of how and from when the error was corrected.

This disclosure is not required to be repeated in the financial statements of subsequent periods.

Practical impossibility of retrospective application and retrospective restatement

50. In some circumstances, it is practically impossible to adjust comparative information for one or more previous periods to achieve comparability with the current period. For example, the information was not collected in the prior period(s) in such a way that a new accounting policy could be applied retrospectively (including applying it prospectively to prior periods for purposes of paragraphs 51 - 53 ) or retrospective restatement to correct for a prior period error, and it may be nearly impossible to recover the information.

51. It is often necessary to make estimates when applying accounting policies to recognized or disclosed elements of financial statements in relation to transactions, other events or conditions. The estimation process is inherently subjective and such estimates may change after the end of the reporting period. Making estimates is potentially more difficult when applying an accounting policy retrospectively, or retrospectively restating to adjust for a prior period error, due to a longer period of time that may have elapsed since the affected transaction, other event or condition. However, the purpose of estimates that relate to prior periods remains the same as for current period estimates, i.e. to reflect in the estimate the circumstances that existed when the transaction, other event or condition occurred.

52. Thus, applying a new accounting policy retrospectively or adjusting a prior period error requires distinguishing between information

(a) that provides evidence of conditions that existed on the date(s) on which the transaction, other event or condition occurred; And

(b) would have been available when the financial statements for that period were authorized for issue, from other information. For a particular type of estimate (for example, a fair value measurement that uses significant unobservable variables), it is practically impossible to distinguish between these types of information. If retrospective application or retrospective restatement requires a significant accounting estimate for which it is not possible to distinguish between these types of information, then applying a new accounting policy or adjusting a prior period error retrospectively is practically impossible.

(as amended by IFRS 13 , approved Order of the Ministry of Finance of Russia dated July 18, 2012 N 106n)

(see text in previous editions)

53. Later information about past events should not be used in applying a new accounting policy to a prior period or adjusting a prior period amount to determine assumptions about management's intentions in the prior period, or to make estimates of amounts recognized, measured or disclosed in the prior period. For example, when an entity corrects a prior period error in calculating the accrued sick leave liability in accordance with IAS 19 "Employee Benefits", it does not take into account information about the next period's unusually strong influenza season that becomes known after the prior period's financial statements have been authorized for release. The fact that significant estimates are often required when making changes to prior period comparative information presented does not preclude reliable adjustments or adjustments to the comparative information.