This is about guidance for selecting and applying the accounting policies used in preparing financial statements. As a result it also covers changes in accounting estimates and corrections of errors in prior period financial statements.
Selection and application of accounting policies
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
If Accounting Policies, Estimates and Errors specifically addresses a transaction, other event or condition, an entity shall apply these specific parts of Accounting Policies, Estimates and Errors. However, the entity need not follow a requirement in Accounting Policies, Estimates and Errors if the effect of doing so would not be material.
Management’s judgment in developing and applying
… Read more