IAS 8 Accounting policy Change in. "Accounting Policy of the Organization"

Accounting is always associated with changes - from minor adjustments to individual postings to major changes in accounting policies. Consider the main provisions of the IFRS (IAS) 8 standard, which is dedicated to these changes in accounting.

Each company, probably, had ever had to change something in their accounting records and financial reports.

Often these changes are small, so you do not worry about them and make adjustments on the go. But sometimes this change can greatly affect the accounting and reporting of the company. For example:

• You adapt to the new IFRS.
• You forgot to overestimate your assets last year.
• You have made some investment, and, as a result, the useful life of your assets turned out to be higher than the period you currently use to accrual depreciation.
• You recognized an impairment loss of your building, but in a year you found a buyer at a much higher price than expected.
• You lost a hopeless judicial matter, but the amount of compensation that you need to pay is slightly lower than your reserves.

In such situations, questions arise:

How to justify the adjustment? Do I need to recalculate financial reports for the previous year? Or can you just make changes or corrections in the current year?

To systematically approach this problem, you need to decide whether you have dealing with a change in accounting policies, or with a change in the accounting assessment or error correction. And for this you need to contact IAS 8 "Accounting Policy, Changes in Accounting Estimates and Errors".

What is the goal of IAS 8?

Standard IAS 8 "Accounting Policy, Changes in Accounting and Error" prescribes:

• How to choose and apply accounting policies;
• How to take into account changes in accounting policies;
• How to take into account changes in accounting estimates; as well as
• How to correct errors made in previous reporting periods.

First, let's try to explain what accounts are accounting policies, accounting assessments and errors, as well as the basic rules that apply to them. Then focus on clarifying the main differences between accounting policies and accounting assessment.

What is accounting policies?

Accounting Policy ("Accounting Policy") - This is a combination of rules, guidelines, conventions, principles and similar norms adopted and used by companies to prepare financial statements.

It should be emphasized here that IAS 8 specifically indicates that the basis of accounting (especially the basis of the assessment) is the accounting policy, and not an accounting assessment.

Therefore, be careful: Do you use the initial cost or fair value for evaluating, this is not just an accounting assessment, but choosing the basis of accounting policies.

How to choose accounting policies?

To answer this question, it is necessary to determine if there is any IAS / IFRS standard or an explanation of an IFRIC / SIC regarding your particular operation or situation.

If there is some standard or clarification, you just apply it. For example, when you take into account your new cars, you obviously apply to IAS 16 "Fixed Tools".

If there is no specific standard or explanationconcerning the operation under consideration, the accountant should resort to judgment or develop your own policyBut with caution, since the policy should provide as reliable and relevant information as possible.

As an example, it is possible to record works of art: this account is not considered by specific standards, and in many cases an accountant needs to develop its own accounting policies.

How to develop your own accounting policies?

At first You need to look at IFRS and explanations of IFRIC / SIC, which relate to similar or related issues.

For example, if you choose your accounting policies for works of art, then it is possible that IAS 16 "fixed assets" or IAS 40 "Investment Real Estate" will be standards concerning similar issues.

Secondly You need to apply the concepts from Conceptual Fundamental Reporting Fundament (Conceptual Framework for FINANCIAL REPORTING).

In addition, you can refer to other authorities issuing standards (for example, FASB), explore their rules or standards and guided by them when developing accounting policies. Many companies do it regularly.

For example, the accounting records of software companies leading to IFRS records often relied on US GAAP standards in matters of recognition of proceeds from program projects, since the IAS 18 "Revenue" did not contain detailed instructions. Although, after the entry into force of IFRS 15 "revenue under contracts with buyers", the situation has changed, because in the matter of recognition of revenues, the IFRS 15 standard is largely similar to the US GAAP.

It should also be added that you must apply every accounting policy consistently to all operations of the same category or the same type. In some cases, IFRS allows you to classify your operations - in this case, you can apply various accounting policies for different categories.

When and how should I change your accounting policies?

The economic environment and the company's activities are subject to change, and therefore sometimes companies have to change their accounting policies.

In what cases can you change the accounting policies?

Only under two circumstances:

• When it is required by other IFRS. This is usually due to the release of the new IFRS, which replaces the old standard. And such a change in accounting policies is usually mandatory.
• When a new account policy provides better, reliable and relevant information. In this case, you voluntarily use new accounting policies.

How to change accounting policies?

If you apply a new IFRS, and this standard contains some transitional recommendations, then you simply follow the rules of these transitional provisions. The new IFRS will clarify you how exactly the accounting policy should be changed.

However, if there is no manual for the transition to a new standard, or you change your accounting policy on your own initiative, then you must apply it retrospectively (for some exceptions).

"RETROSPECTIVELY" (RETROSPECTIVELY) means refund to the previous reporting periods and will overcome each component of capital, as if the new policy was always applied. Be careful because you also need to recalculate the comparative data!

What are accounting assessments?

An accounting assessment is not determined by IAS 8 directly, but indirectly - as change in accounting estimates ("Change in Accounting Estimate").

When you change the accounting assessment, you change some amount or asset, or obligations, or change the model of its consumption (write-off / repayment) both in the current and future reporting period.

Consider the following:

• If these changes are associated with some new information trend, or development, then these are changes in accounting estimates.
• If these changes are associated with a certain error, for example, incorrect calculation or incorrect application of accounting policies, they are not changes in accounting estimates. These are mistakes, and they should be taken into account as errors.

Typical examples of changes in accounting estimates are:

• Reserve of hopeless debt,
• Depreciation norms and useful life of your assets,
• Reserve for warranty repair, etc.

How can you justify the change in the accounting assessment?

Unlike changes in accounting policies, accounting estimates must be changed promising:

• In the current reporting period in the form of the so-called "prospective correction";
• Both in the current and future reporting period, if the change affects both periods (for example, a change in useful uses affects depreciation accruals, both in the current and future reporting periods).

"PROSPECTIVE" (PROSpectively) means that you do not recalculate comparative data and capital. You do not deal with financial statements for previous reporting periods. You simply adjust the calculations in the current and future reporting periods.

The difference between accounting policies and accounting assessment.

It is sometimes very difficult to appreciate whether we have dealing with accounting policies or accounting assessment.

What are the main differences?

• While the accounting policy is a principle or rule or basis for evaluation, an accounting assessment is the amount determined on the basis of a selected approach or a certain model of future asset consumption.
  For example: the choice of fair value instead of the initial cost is the choice of accounting policies, but changing some reserves as a result of a fair value change is a change in the accounting assessment.
• Changes in accounting policies are reflected retrospectively, and changes in the accounting assessment are promising.

Just be very careful and deal with whether the change with the principles or certain calculations is connected. If you are wrong, it can lead to significant distortion in accounting!

Accounting errors.

Errors of previous periods are some omissions (that is, when you forgot something) or distortion in financial statements as a result of ignoring or misuse of information in the preparation of these financial reports.

In fact, it does not matter why an error occurred - whether it was deliberate (fraud) or unintentional, you still need to fix it if it is essential.

The question is whether the error is essential?

The concept of materiality is explained in IAS 1 "Presentation of Financial Reporting" [see Definition in the paragraph of IAS 1: 7], but if briefly: everything that can affect solutions to users of financial statements is essential. In other words - something important.

Do not forget that something can be significant not only because of its size, but also because of its character: for example, the bonuses paid to your guidelines are always significant, whether they make tens or millions of dollars.

Let's return to accounting bugs:

• If the error is not essential, you can fix it in the current reporting period. Remember that if the error is not essential, your financial reports can still be reliable and relevant.
• If the error is essential, you always adjust it retrospectively, Returning and recounting numbers in previous periods.

An example of correction of an accounting error related to an erroneous assessment of the useful use of fixed assets ,.

Sequence of accounting policies

13 The company must select and apply accounting policies consistently for similar operations, other events and conditions, if only any IFRS does not specifically require or does not allow division of articles by categories for which different accounting policies may be approached. If any IFRS requires or allows such division into categories, then for each such category, you should select the appropriate accounting policies and apply it sequentially.

Changes in accounting policies

14 The company should make changes to the accounting policy only if such a change:

(a) it takes any IFRS; or

(b) will lead to the fact that financial statements will provide reliable and more appropriate information on the impact of operations, other events or conditions for financial position, financial results or cash flow of the enterprise.

15 Financial Reporting users need to be able to compare the financial reports of enterprises of different periods in order to determine the trends in its financial position, financial results and cash flow. Thus, the same accounting policy is applied during each period and from one period to the next one, unless the change in accounting policy does not respond to one of the criteria in paragraph 14.

16 The following actions are not changes in accounting policies:

(a) Application of accounting policies for operations, other events or conditions differing in their essence from operations, other events or conditions previously visiting; and

(b) Application of a new accounting policy regarding operations, events or conditions that have not previously had or insignificant.

17 Initial application of the reassessment policy of assets according to IAS 16 "Fixed assets" or IAS 38 "Intangible assets" is a change in accounting policies, which is considered as a revaluation in accordance with IAS 16 or IAS 38 , not in accordance with this standard.

Application of changes in accounting policies

19, with the exception of the prescribed paragraph 23:

(a) the company must take into account changes in accounting policies arising from the initial use of any IFRS in accordance with specific transitional provisions, if any, this IFRS; and

(b) When the company changes the accounting policy at the initial application of IFRS, which do not prescribe the specific transitional provisions applied to such a change, or voluntarily changes the accounting policies, it should apply a change in retrospectively.

20 For the purposes of this Standard, early use of IFRS is not a voluntary change in accounting policies.

21 In the absence of a specific IFRS, which is applied to the operation, a second event or condition, the management may, in accordance with paragraph 12, apply accounting policies from the most recent regulatory documents of other authority settings that use a similar concept to develop accounting standards. If, following the change in such a regulatory document, the company decides to change accounting policies, such a change is taken into account and is disclosed as a voluntary change in accounting policies.

Retrospective application

22, with the exception of the prescribed clause 23, when changes in accounting policies are applied retrospectively in accordance with paragraph 19 (a) or (b), the enterprise should adjust the initial balance of each touched by this change in the capital component for the earliest of the presented periods and other comparative data, The disclosed for each of the previous periods presented, as if the new accounting policy was always applied.

Restrictions on retrospective application

23 When retrospective application requires items 19 (a) or (b), the change in accounting policies should be applied retrospectively, except in cases where it is almost impossible to determine the effect relating to a certain period, or a cumulative effect of change.

24 When it is almost impossible to determine the impact of the change in accounting policies related to a certain period, on comparative information of one or more presented previous periods, the enterprise should apply a new accounting policy to the book value of assets or obligations to the beginning of the early period, for which retrospective application is practically feasible and which can be the current period, and carry out appropriate adjustments of the initial balance of each raised by the change in the capital component during this period.

25 When it is almost impossible to determine the cumulative impact on the beginning of the current period from the application of new accounting policies to all previous periods, the enterprise should adjust comparative information in order to apply promising new accounting policies from the earliest date that the application will be practically feasible.

26 When the company applies a new accounting policy retrospectively, it applies it to comparative information for previous periods on so many periods ago, as far as practically feasible. Retrospective application to the previous period is almost impossible, unless the definition of cumulative influence on the amount in the statement of financial position both at the beginning and at the end of the period is not practically feasible. The amount of the adjustment relating to the periods preceding the financial statements submitted in the initial balance of each raised by the change in the capital component in the earlier of the presented periods. Typically, retained earnings is correct. However, the adjustment may also relate to another capital component (for example, to comply with the requirements of any IFRS). Any other information about previous periods, such as reports of financial information for previous periods, is also adjusted for so many periods ago as practically feasible.

27 When a retrospective application of a new accounting policy is almost impossible, as it cannot determine the cumulative effect of applying accounting policies to all previous periods, in accordance with paragraph 25, the company applies a new accounting policy promising from the beginning of the earliest period from which the use will be practically feasible . Thus, the company does not take into account part of the cumulative adjustment of assets, obligations and capital arising from this date. Changing the accounting policy is allowed, even if the prospective application of policies for any of the previous periods is almost impossible. When applying a new accounting policy to one or earlier periods is almost impossible, it should be guided by the provisions of paragraphs 50-53.

Information disclosure

28 If the initial application of any IFRS affects the current or previous period, it would have such an impact, except when it is almost impossible to determine the amount of the adjustment, or it might have an impact on future periods, the company must disclose the following information:

(a) the name of this IFRS;

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

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

(d) in cases where it applies, a description of transitional positions;

(e) in cases where applicable transitions that may affect future periods;

(f) the amount of adjustment for the current and for each of the presented periods to the extent that it is practically feasible:

(ii) for basic and divergent profits per share, if IFRS (IAS) 33 "Profit per share" applies to the enterprise;

(g) the amount of adjustment relating to the periods preceding the preceding presented to the extent that it is practically feasible; and

(h) if the retrospective application required by paragraphs 19 (a) or (b) is almost impossible for a certain previous period or periods preceding the circumstances that led to the presence of such a condition, and a description of how and from what point the change was applied In accounting policies.

29 If the voluntary change in accounting policy has an impact on the current period or the previous one, would have an impact on this period, except when it is almost impossible to determine the amount of adjustment, or it might have an impact on future periods, the enterprise must disclose the following information:

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

(b) the reasons for which the application of a new accounting policy provides reliable and more appropriate information;

(c) the amount of adjustment for the current and for each of the presented periods to the extent that it is practically feasible:

(i) for each error of the financial statements affected; and

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

(d) the amount of the adjustment relating to the periods preceding the presented, to the extent that it is practically feasible; and

(e) If retrospective use is almost impossible for a certain previous period or periods preceding presented, the circumstances that led to the availability of such a condition, and a description of how and from what point the change in accounting policies was applied.

Repeating the disclosure of this information in the financial statements of subsequent periods is not required.

30 In cases where the company does not start applying new IFRS, which has been released, but has not yet entered into force, it must disclose the following information:

(a) this fact; and

(b) a well-known or reasonable evaluated information, appropriate to assess the possible impact of the application of the new IFRS on the financial statements of the enterprise in the original application.

42, with the exception of paragraph 43, the company must retrospectively correct the essential errors of the previous periods in the first package of financial statements approved for the release, after their detection through:

(a) recalculation of comparative data for the previous period presented (s) in which an error was allowed; or

(b) If the error was admitted to the earliest of the presented periods, then the recalculation of the initial balance of assets, obligations and capital for the earliest of the presented periods.

Restrictions on retrospective recalculation

43 The error of the previous period should be adjusted by retrospective recalculation, except in cases where it is almost impossible to determine the effect relating to a certain period, or the cumulative effect of the error.

44 When it is almost impossible to determine the impact of an error related to a certain period, for comparative information for one or more presented periods, the company must recalculate the initial balance of assets, obligations and capital for the earliest period for which the retrospective recalculation is practically implemented (this period may be current ).

45 When it is almost impossible to determine the cumulative effect of the error for all previous periods as of the beginning of the current period, the company must recalculate comparative information in order to promote the error from the earliest date that it will be practically feasible.

46 The correction of the previous period error is not included in the profit or loss for the period in which the error was detected. Any information provided on previous periods, including historical reports of financial information, is recalculated for so many periods ago as practically feasible.

47 When it is almost impossible to determine the amount of error (for example, an error in applying accounting policies) for all previous periods, in accordance with paragraph 45, the enterprise should recalculate comparative information promising from the earliest date, with which it is practically feasible. Thus, the company does not take into account part of the cumulative recalculation of assets, obligations and capital arising from this date. When an error correction for one or more previous periods is almost impossible, it should be guided by the provisions

(i) for each error of the financial statements affected; and

(c) the amount of adjustment at the beginning of the early period of the presented; and

(d) If retrospective recalculation is almost impossible for a certain previous period, the circumstances that led to the presence of such a condition and a description of how and from what point the error has been fixed.

Repeating the disclosure of this information in the financial statements of subsequent periods is not required.

The practical impossibility of retrospective application and retrospective recalculation

50 In some conditions, it is almost 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 previous period (s) in such a way that retrospective use of a new accounting policy may be possible (including its promising application to previous periods for the purposes of paragraphs 51-53) or retrospective recalculation to adjust the previous period error, and recovery information It can be almost impossible.

51 It is often necessary to make calculated estimates when applying accounting policies to recognized or disclosed financial statements regarding operations, other events or conditions. The process of the estimated assessment in nature is subjective, and such estimates may change after the end of the reporting period. The implementation of the calculated estimates is potentially more difficult with retrospective application of accounting policies or retrospective recalculation to adjust the previous period error due to a longer period of time, possibly the event that has passed after the operation being affected, other events or conditions. However, the purpose of the estimates that relate to the previous periods remains the same as for the calculated estimates of the current period, that is, the reflection in the estimation of the circumstances that existed at the time of operation, other events or conditions.

52 Thus, the retrospective application of a new account policy or an error correction of the previous period requires to distinguish information,

(a) which provides proof of the conditions existing on the date (s) to which the operation, the other event or condition took place; and

(b) Would be available when financial statements for that period were approved for release, from other information. For a certain type of calculated estimates (for example, an assessment of fair value at which significant variables not to be monitored) is practically impossible to distinguish between these types of information. If retrospective application or retrospective recalculation requires a significant estimation, for which it is impossible to distinguish between these types of information, the use of a new account policy or the error correction of the previous period is retrospectively impossible.

Change information:

53 The later information about past events should not be used when applying a new accounting policy to the previous period or adjusting the amount of the previous period to determine the assumptions about the intentions of the manual in the previous period, or for evaluation calculations of recognized, estimated or disclosed in the previous period. For example, when an enterprise adjusts the error of the previous period when calculating the obligation for accumulated sick leave in accordance with IAS 19 "employee remuneration", it does not take into account information about the season of unusually strong flu, which took place in the next period, which becomes known After the finance reporting for the previous period was approved for release. The fact that when making changes to the presented comparative information for previous periods, essential estimates are often required, does not prevent reliable amendments or adjustments to comparative information.

Date of entry into force

54 The company should apply this standard for annual periods beginning on January 1, 2005 or after this date. If an enterprise applies this standard for a period starting before January 1, 2005, it should reveal this fact.

55 This standard replaces IAS 8 "net profit or loss for a period, fundamental mistakes and changes in accounting policies" in the 1993 editorial office

56 This standard replaces the following explanations:

(a) PCR (SIC) - 2 "Sequence - Capitalization of Borrowing Costs"; and

(b) PCR (SIC) - 18 "Sequence - Alternative Methods".

IAS 8 "Accounting Policy, Changes in Estimated Evaluation and Errors"

Analogues in Russia: PBU 1/2008

"Accounting policy of the organization",

PBU 22/2010 "Correction of errors in accounting and reporting".

The company should apply this standard for annual periods beginning on January 1, 2005 or after this date.

The goal of IFRS 8 is to form the criteria for choosing and changing accounting policies, as well as the procedure for accounting and disclosing changes in accounting policies, changes in settlement assessments and error corrections.

The fulfillment of the requirements of the Standard provides comparability of the company's financial statements in time and with the financial statements of other companies.

According to IFRS 8 "Accounting Policy, Changes in Estimates and Errors" should meet the following requirements: sequence, relevance, reliability, honest presentation of the company's results, reflect the economic content of events, and not just their legal form, neutrality, prudency and fullness.

Definitions

Accounting policyAccounting Policies) - These are specific principles, methods, procedures, rules and practices adopted by the Company for the preparation and submission of financial statements.

Change in the accounting assessment is the adjustment of the carrying amount of the asset or obligations or the amount of periodic consumption of an asset, which arises as a result of assessing the current state of assets and liabilities and the expected future benefits and responsibilities related to assets and obligations. Changes in accounting estimates arise as a result of the appearance of new information or development of events and, accordingly, are not corrections of errors.

One of the most important principles acting on the construction of accounting policies is the principle of sequence.

Definition

The sequence of accounting policies means the need to maintain the selected accounting methods from one reporting period to another.

It should not be necessary without need and serious justifications to change the classification and content of individual articles of reporting forms, a methodology for accounting and evaluating various reporting indicators. Unwanted unmotable changes in accounting policies. Standard provides

the following grounds for changes in the content sequence of financial statements are:

• - significant changes in the nature of the company's operations;
• - large acquisitions during the reporting period or, on the contrary, a significant disposal of property, changes in policies related to the involvement of borrowed sources of funding;
• - a conclusion based on analytical research on the possibility of better and comprehensive to present information on the results of activity and financial position in the changed, rearrangement reporting;
• - Changes prescribed by the newly introduced IFRS. The requirements of national standards can be taken into account only when changing the financial statements does not contradict IFRS.

The standard emphasizes that comparative information should be disclosed in relation to the previous period for all numerical information in the financial statements, with the exception of cases that are specifically listed in IFRS. In financial statements, it is necessary for each article and each indicator to reflect numerical values \u200b\u200bin comparable form, at least for the reporting and preceding the same period. Standard does not prohibit comparative data in more than one previous period. These may be data for several preceding periods.

Accounting policy should be selected and applied in such a way that all financial statements complimentary in all significant aspects of the requirements of each international financial statements applicable to the company. Financial statements under IFRS should be based on the agreement on the continuity of the organization's activities in the foreseeable future, but not less than 12 months after the reporting date. If the administration has no reasons for termination of activities, it must declare this in the notes.

The method of accrual must be applied in the preparation and submission of financial statements. The exception to this rule applies only to the cash flow report. A cash flow report reflects real cash flows, including cash equivalents that took place during the reporting period. Such is the feature of this report.

According to the accrual method, for example, the fact of sales is reflected in accounting registers and in the reporting at the moment when the transaction was committed, the terms of the contract were fulfilled, and the ownership of goods and responsibility for its safety was transferred (crossed) to the Buyer. Interest on credit liabilities are reflected in the reporting period in which the organization used borrowed funds, even if they (interest) were unpaid during this reporting period.

Expenditures are reflected when appropriate income arise in accounting. In the absence of income, incurred costs are reflected in budgetary and regulatory articles as expenses of future periods or passing the following period costs for incomplete production or creation of inventories. So the principle of correlation of costs with income is valid. At the same time, it is impossible to allow passing remnants according to articles that do not meet other established criteria for the definition of assets or liabilities. For example, the costs of paying fines for violations of economic contracts do not generate income, but they cannot be considered as overgoing expenses and reflect in the assets of the accounting balance sheet. They must be written off to reduce the profits of the reporting period in which they were recognized as expenses.

The standard indicates that each significant article should be submitted in the financial statements separately. Inssentual amounts must be combined with the amounts of a similar nature or destination and not to submit separately. When drafting reporting, it should be processed from the fact that it is impossible to clog its irrelevant articles, thereby making perception and understanding by users. Even when IFRS requires a specific disclosure of certain aspects and indicators, they should not be carried out in the context of materiality, if the information disclosed is insignificant. Articles exceeding 5% The total result of this report should be recognized substantial. For qualitatively, information is recognized as essential if the no or insufficient disclosure may affect those solutions that users are based on financial statements. The remains of non-sold finished products are usually combined with other revolving material assets in the "stock balance".

Articles of assets and liabilities, income and expenses are not subject to test and are reflected in the reporting of individual articles in cases where they are essential. Collecting is possible only in cases when:

• - IFRS require or authorize a test;
• - Articles of assets, obligations, profits, losses associated with their costs are defined as insignificant.

It is important to understand that the settings of articles in financial statements reduce understanding by users of operations conducted by the organization, reduce their ability to predict future cash flows, the results of the organization and financial condition of the organization.

The standard contains some prompts and explanations that limit the application of the indications of the standard relative to the settings of individual articles. Balance articles are reflected in the net estimate. In notes to reporting, the amounts of accrued reserves should be disclosed and not subject to the balance sheet of the balance sheet submitted in it at the residual value.

Important!

In the accounting policy, the principle of correlation of costs with income should be observed, while the operations do not bring some income, the costs of them are reflected in the reporting period, in which these operations were performed, by setting any income incomes.

The results of operations for the implementation of long-term assets, as well as short-term investments and other current assets, are submitted in the reporting less out of the total income from the sale of the book value of the retired asset and the costs that have arisen during implementation.

Costs that are reimbursed under the terms of the contract with a third party must be credited by reducing the reimbursement. Thus, the receipts under the contract of sublease are reflected by relevant reduction in rental costs. Payment of part of municipal services by the sublendator is reflected as a decrease in the relevant expenses of the tenant.

Profit and losses on similar similar operations (for example, positive and negative courses) are submitted in the reporting by setting up and defining a net indicator. However, their size, origin, characteristics and other features can exclude the use of a net indicator, and profit themselves and losses for these operations should be reflected in the reporting deployed.

Important!

IFRS 8 describes three possible ways to reflect changes in accounting policies:

• - retrospective;
• -current;
• -perspective.

With a retrospective approach, the data is needed to adjust all financial reports for previous periods. The reporting of previous periods should be recalculated in accordance with the new accounting policy.

The current approach is characterized by adjustments to the total effect of changes in accounting policies (shown by a separate article in the report on cumulative income for the current year).

A promising approach means that there is no need to recalculate previous financial reports and no need to recalculate the total effect of changes in accounting policies in the report on cumulative income for the current period. Changing accounting policies only affects the financial statements of the current or future reporting periods.

When forming accounting policies, it is important to take into account the principle of materiality. Pass or distortions of articles are considered essential if they separately or together could affect the economic solutions of users accepted on the basis of financial statements.

Errors of previous periods are missing or distortion in the financial statements of an enterprise for one or more periods arising from non-use or incorrect use of reliable information.

In preparation of financial reports, estimates are often used. Thus, accountants cannot confidently predict the magnitude of the liquidation value of the asset, its service life, as well as other parameters that the external environment factors have significant impact. Accordingly, obtaining new information leads to the need to revise previously made assessments.

Definition

An accounting assessment is approximate values \u200b\u200bthat may need to revise as additional information arrives.

With regard to accounting policies, the retrospection rule is valid.

Definition

Retrospection means applying accounting policies to operations, other events and conditions as if this account policy is always applied.

Retrospective application of accounting policies is to apply new accounting policies to operations, other events and conditions in such a way as if this accounting policy was always used in the past.

Retrospective recalculation - this is an adjustment of the recognition, measurement and disclosure of the amounts of financial statements elements in such a way as if the error of the previous period never had space.

IFRS 8 allows you to display a change from the earliest period for which the management of the company considers it appropriate.

Example 2.4.

Conditions: The financial statements of the company for 2010 contained the following indicators.

The arrival of the NMA 1250 dollars.

Depreciation of NMA (650) dollars.

Table 2.21

Table 2.22.

The task:It is required to make adjustments to the report on cumulative income for 2011, subject to retrospective application of accounting policies.

Reference: Salto NMA on January 1, 2010 and the arrival of NMA for 2010 and 2011. Refer to the cost of developing a new activity, other NMAs on the balance sheet not listed.

Decision:The costs of developing a new type of activity should have written off on costs at the time of their occurrence. Since they were taken into account as part of the NMA, it is necessary to reset the NMA article and adjust the costs in the income statement and the amount of accumulated profits in the report on capital changes. Calculate the sum of the required adjustments (Table 2.23, 2.24).

Table 2.23

Extract from the report on cumulative income, dollars.

Table 2.24.

Extract from the report on capital change, dollars.

1) NMA for 2010 (initial cost less depreciation): 1,250 dollars - $ 650 \u003d 600 dollars

The inclusion of NMA in costs: $ 600 + 450 dollars \u003d $ 1050

The cost of the value of the accrued depreciation is not needed, as it was already attributed to the expense at the time of the accrual;

2) Adjustments include the amount 1) and the LMA residue at the beginning of the previous year: $ 1500 + $ 600 \u003d $ 2,200.

In the Balance Report, the NMA article is resetting, the article has accumulated profits is adjusted in the amount of $ 2,200.

If it is necessary to carry out the transformation of Russian reporting in the reporting, compiled in accordance with IFRS, it is necessary to possess the skills of professional drawing up policies that meets all significant aspects with the requirements of international standards used in the company. Due to the fact that the preparatory stage of reporting transformation requires an IFRS Accounting Policy, two accounting policies appear in the company's reporting: on Russian and international accounting. Comparison and analysis of the accounting policy compiled under IFRS, with accounting policies drawn up in accordance with the requirements of Russian PBU, helps to determine the main differences in accounting and calculating correction records. At the same time, when drawing up accounting policies, you can go along the way to maximize the approach of accounting methods, acceptable both in Russian accounting, and according to the rules of IFRS, thereby optimizing accounting and drawing up reporting.

Information disclosure requirements

The company must disclose the nature of the error of the previous period to the extent that it is practically feasible for each raised linear article in the reporting. Over the next periods, you do not need to repeat these disclosures.

To ensure comparability of information provided in the financial statements, consistently, from year to year the same approaches to the classification and accounting of the same articles and operations should be applied. Therefore, in the event of a change in accounting policies, it is often necessary to recalculate these periods. Consider issues of retrospective changes in accounting policies and disclosure of information in such cases.

One of the qualitative characteristics of the financial statements is its comparability, which, among other things, is considered as a comparability of indicators of the same company for different periods. Measurement and reflection of the results of similar operations and other events should be carried out consistently, from year to year in the same way.

However, the credit institution's accounting policy cannot remain unchanged throughout its existence. It is possible both external causes, for example, the development of the principles of the financial statements as a whole, revision and issuance of new standards and internal - related to the change in the financial and economic activities of the enterprise. In this regard, the comparability of financial statements is being implemented not so much by consolidating times and for all of a specific accounting policy, how much to inform users about its basic principles of application in the reporting period, any changes in it with respect to the previous period, the results of these changes and their impact on reporting indicators .

The choice and application of accounting policies, as well as its changes are governed by IAS 8 "Accounting Policy, Changes in Accounting Estimates and Errors". Particular attention in the standard is given to a retrospective change in accounting policies and retrospective error correction. In our opinion, the main difficulties faced by credit organizations when using IFRS (IAS) 8, this is:

• classification of changes in approaches to accounting for certain articles or operations, such as changing accounting policies, error correction or change in accounting estimates;
• implementation of retrospective recalculation in cases where the standard requires this;
• the correct representation of financial reporting indicators affected by the change in accounting policies and disclosure of relevant information in notes.

Changing Accounting Policy: Basic Requirements

Accounting policies are specific principles, fundamentals, agreements, rules and practices adopted by the enterprise to prepare and submit financial reporting. Accounting policy for the purposes of compiling financial statements in accordance with IFRS should be approved as a separate document by the authorized department of the credit institution, and the main provisions and changes made to the accounting policy in the reporting period should be disclosed in reporting notes.

Standards are not defined whether the accounting policy should be approved again for each next reporting period. From this, it can be concluded that for the purpose of compiling reports in accordance with IFRS, it is allowed not to assert each year the next editorial board of the accounting policy, but to continue to use the previously active, if necessary, making changes to it. Often, changes in accounting policies require precisely retrospective application, so the indication of the initial period of their actions is not so important.

Retrospectivity is to apply new accounting policies to operations, other events and conditions, as if this accounting policy was always used in the past. In this case, recalculation and adjustment of the financial statements of previous periods, which have been formed on the basis of previous accounting policies. Consequently, the value of the recalculated indicators given as comparative data in the financial statements of the current period will differ from their magnitude given in the financial statements of the previous periods.

Prospective application of changes in accounting policies is to apply new accounting policies to operations, other events and conditions that took place after the date, which has changed policies. In this case, the recalculation and adjustment of the financial statements of the previous periods is not required, and they are disclosed in the financial statements of the current period in the same values \u200b\u200bas before.

Making changes to the accounting policy in accordance with paragraph 14 of IAS 8 is allowed if:

• a) such a change requires any standard;
• b) It will lead to the fact that financial statements will contain reliable and more appropriate information on the impact of operations, other events or conditions for financial position, financial results or cash flow.

At the same time, if an enterprise applies a new accounting policy regarding operations, events or conditions that were previously not previously, they were insignificant or they differ in their essence from operations, events and conditions previously visiting, this action is not considered as a change in Accounting Policy (p. 16 IAS 8).

Example 1.

The bank has not previously formed obligations regarding long-term rewards to employees when retirement, since the internal position on the payment of their payment was provided for, but not guaranteed, a small circle of persons, and their value was estimated as extremely insignificant. In 2013, the Board of Directors made changes to the Labor Regulations, expanding the circle of persons entitled to receive remuneration and increasing its size.

As a result, as of December 31, 2013, the Bank will generate liabilities obligations, but this will not be considered as a voluntary change in accounting policies requiring retrospective use.

In accordance with paragraph 19 of the IAS 8, if changes in accounting policies arose as a result of the initial application of any standard, they are taken into account in accordance with the specific transitional provisions of this standard, if any. Almost all new and revised standards contain an indication of what annual periods are used whether early use is allowed and whether the initial application of this standard is promising or retrospective.

For example, IFRS 13 "Fair Cost", which came into force for annual periods starting from January 1, 2013 or after this date, permits early application and should be used promising at the beginning of the annual period in respect of which it was originally applied. One of the innovations of this standard is the lack of guidance on the fact that for an asset traded in the active market, the best confirmation of fair value will be its purchase quotation (demand price).

Example 2.

Suppose that until 2013, according to the credit institution's accounting policy, the fair value of securities listed on the stock exchange was determined as a revealed price of the demand at the end of the last trading session before the reporting date. From January 1, 2013, in connection with the entry into force of IFRS 13, a credit institution has made changes to its accounting policy, providing for the definition of fair value of securities listed on the stock exchange, based on the Biddling Bidders disclosed in the last day before the reporting The date, justification, the fact that this value will be closest to the price, in which the credit organization could sell securities at the reporting date.

Thus, the fair value of securities as of December 31, 2013 will be determined by a credit institution in accordance with the changed accounting policy, and the fair value of securities as December 31, 2012 - according to the previously active accounting policies. Since IFRS 13 is applied promising, the need to recalculate the fair value of securities as of December 31, 2012 in accordance with the new accounting policy does not occur.

However, new standards, on the contrary, often require precisely retrospective application. For example, IFRS 9 "Financial Instruments", the entry into force of which has yet been postponed until 2015, is expected to be applied retrospectively.

If the company voluntarily makes changes to the accounting policy or changes it at the initial application of IFRS, which does not prescribe specific transitional provisions applied to such a change, then such changes should also be applied retrospectively.

Voluntary change in accounting policies is possible only if it leads to the fact that financial statements will contain reliable and more appropriate information. The concepts of reliability and relevance are given in the "concept of preparation and submission of financial statements." The reasons for which the application of the revised accounting policy ensures reliable and more appropriate information should be disclosed in the notes to the financial statements (paragraph 29 of IAS 8).

However, there are exceptions to the requirements for a retrospective application of accounting policies in the event of its voluntary change, which are given in paragraph 17 of IFRS (IAS) 8. So, the initial application of the reassessment policy of assets in accordance with IAS 16 "fixed assets" is considered as revaluation and Does not require retrospective application. At the same time, for the reverse transition from the accounting model for the revalued cost to the accounting model at the initial costs of such an exception.

Before, if earlier a credit organization at each reporting date was reassessing fixed assets at fair value, and, for example, since 2013 decided the revaluation no longer hold and return to the accounting model for actual costs, then such a change in accounting policies will require retrospective application.

As for investment real estate, paragraph 31 of IFR (IAS) 40 "Investment Real Estate" indicates an unlikely that the transition from the investment real estate model at fair value to the accounting model for actual costs will provide a more appropriate presentation of information.

Voluntary Changing Accounting Policy

The decision to change the accounting policy should be taken by the same authority of the Bank, which is authorized to assert it. If accounting policies voluntarily change, in an approved decision on amending, it is advisable to include a reference to the relevant facts and circumstances, in connection with which the revised accounting policy will contribute to the provision of more reliable and relevant information. In general, you can allocate two main directions of voluntary changes in accounting policies.

The first is to change the model or method of accounting for certain objects or operations, when the company's standards themselves are given a choice from several such models or methods, for example:

• the transition between property accounting models for revalued costs or by actual costs;
• the transition between the methods for determining the cost of interchangeable reserves by the FIFO method or at a weighted average value.

The second direction is a change in the accounting policy independently developed by the credit institution regarding certain objects or operations, including in cases where the requirements of any of the standards are not applicable. So, for example, individual IFRS are not dedicated to such articles as the rights of lease of land, issued advances and their impairment, deferred income and expenses, capital investments in rented property, etc. Accordingly, the change in approaches to the accounting of such operations will be considered as a voluntary change in accounting policies.

In addition, the requirements of standards often contain such definitions as "essential" or "significantly." Numerical criteria of materiality and significance in each particular case are usually independently established by a credit institution in their accounting policies, and the influence of these numerical criteria for financial statements may be quite significant.

As an example, it is possible to record the object of real estate, one part of which is used to obtain the rent and the increase in capital costs, and the other to provide services and for administrative purposes, and the part of such an object cannot be sold separately. Such an object is classified as investment real estate, only when only a minor part is intended for use in the production, services or administrative purposes; Otherwise, it is classified as the main means (paragraph 10 of IFR (IAS) 40).

Example 3.

Suppose that the bank has consolidated in accounting policies described above the insignificance criterion as 5% of the total area and took into account the office building, 10% of the total area of \u200b\u200bwhich is used to accommodate an additional office, and 90% are leased as the main tool according to the accounting model for actual costs. . Starting from 2013 for certain reasons, for example, due to the increase in real estate prices, the Bank chose to reflect this property as an investment. In this regard, it was necessary to make changes to the accounting policies, increasing the specified criterion to 15% of the total area of \u200b\u200bthe object.

Since the assessment of the criterion of significance in this case is not related to the factors of uncertainty inherent in economic activity, such as impairment, evaluation of fair value or the useful use of assets, then this change should be interpreted not as a change in accounting assessment, but as a change in accounting policy. Like any other voluntary change in accounting policies, it must be justified from the point of view of providing more reliable and relevant information and is applied retrospectively.

As a result, not only December 31, 2013, but also in comparative information for the previous reporting periods, the property under consideration will be reflected as an investment in accordance with the model of accounting, which is selected by the enterprise for this category.

In some cases, classify a change in approaches to accounting as a change in accounting policies or a change in accounting estimates is much more complicated. According to IAS 8, a change in the accounting assessment is the adjustment of the carrying amount of the asset or obligation, which arises as a result of the assessment of their current state, as well as the expected future benefits and responsibilities, with them related. Such an assessment may require revision if the circumstances on which it was based, or as a result of the emergence of new information or the accumulation of experience, and the impact of changes in accounting estimates is promising, starting from a period in which such a change occurred is.

For example, the revision of the remaining useful use of the fixed assessment or method of its depreciation refers to changes in accounting estimates (clause 51 and 61 of IAS 16). At the same time, the applied deadlines for the useful use of different groups of fixed assets are usually fixed in the accounting policy of the enterprise. How can the situation should be interpreted when the company decided not only to change the useful life for specific fixed assets, but in general, to review the accounting policies in terms of terms applied in all groups of fixed assets?

Paragraph 35 of IFRS (IAS) 8 contains the following indication: "The applied valuation in the assessment base is a change in accounting policies, and not a change in the accounting assessment. In the case, when it is difficult to distinguish a change in accounting policies from changes in the accounting assessment, it is taken into account as a change in the accounting assessment. "

Consider the situation with a change in the methodology for the formation of reserves for impairment of loan debt. The value of the loan impairment is the calculated accounting assessment, since it cannot be defined exactly, and can only be approximately calculated using judgments based on the most fresh, accessible and reliable information for each reporting date. However, a particular methodology for building such estimates is usually fixed by the enterprise, and its key provisions are disclosed in reporting notes when describing accounting policies.

Example 4.

Earlier, when reporting in accordance with IFRS, the Bank did not take into account the obtained provision when calculating the value of reserves for impairment of loan debt. Starting from 2013, the methodology for the formation of reserves for impairment of loan debt was decided to make changes to adjust the values \u200b\u200bof reserves depending on the characteristics and cost of the obtained collateral. At the same time, no circumstances have changed that could affect accounting assessments, for example, such as a change in the legislation on collateral or an increase in the bank of the share of loans redeemed by imposing recovery to ensure.

In this case, the change in the methods of forming reserves can be interpreted precisely as a change in accounting policies with the need to flow from here, the need to retrospective use.

Paragraph 53 of IAS 8 contains a special indication that, while following the new account policy, the later information appeared about past events should not be applied to the previous period for determining the assumptions about the intentions of the manual in the previous period or for evaluation calculations of recognized, evaluated or disclosed in previous period amounts.

Example 5.

Using the data of Example 4, suppose that as of December 31, 2012, the loan issued was considered by the Bank as not necessarily on an individual basis. In 2013, the loan was implanted due to the deterioration of the financial condition of the borrower. In this case, when recalculating the values \u200b\u200bof reserves as of December 31, 2012. Due to a retrospective change in the methodology, this loan should still be considered as unrelaked, since information about the deterioration of the financial condition could not be reasonably obtained on this date.

Retrospective recalculation and disclosure of information

With a retrospective application of accounting policies, a credit institution should adjust the initial balance of each raised by this change in the capital component for the earliest of the presented periods and other comparative data disclosed for each of the previous periods presented, as if the new accounting policy was always applied.

However, the requirements for retrospective use do not apply in cases where to determine the effect relating to a certain period, or the cumulative effect of the change is almost impossible, that is, it cannot be determined despite all the real attempts to do it. For example, for retrospective application of accounting policies, primary documents were required for some operations, but they were already destroyed in connection with the expiration of the storage period.

It is also almost impossible to retrospectively apply a change in accounting policies if the assumptions are required to be the intentions of leadership in those periods, or significant estimates and it is impossible to objectively identify information about these estimates.

In this case, the credit institution should apply new accounting policies to the book value of assets or liabilities at the beginning of the early period, for which retrospective use is practically feasible and which can be the current period (p. 24-28 IAS 8).

In addition, it may be that the application of the revised accounting policy for operations and articles of the previous periods will only lead to insignificant changes in their value assessment compared to previously operating accounting policies.

For example, the cost of fast-coiled reserves defined by the FIFO method is expected to differ insignificantly from their cost, calculated by the method of weighted average cost, but the cost of the cost of the cost to another method can be quite time consuming. In this regard, when evaluating the need to retrospective recalculation of financial statements in connection with the change in accounting policy, it is advisable to take into account such a fundamental limitation, as a balance between benefits and costs: the cost of providing users to information should not exceed the benefits from it.

This restriction is expressed in the fact that the application of accounting policies is not mandatory in cases where the effect of this is not essential (paragraph 8 of IFR (IAS) 8). This right can be extended to the retrospective application of accounting policies when it does not have a significant impact on reporting indicators. Nevertheless, it will be necessary to conduct preliminary calculations for previous periods of revised accounting policies in order to reasonably argue about the nonsense of its application, as well as to coordinate the intended effect with the level of materiality established by the credit institution. In this case, it is possible to navigate the same level of materiality, which is established for significant errors of past years to be retrospective correction.

A significant part of Russian credit institutions is reporting in accordance with IFRS method of transformation, so in the case of retrospective changes to the accounting policy, it will be enough to return to transformational tables for previous reporting dates and make it necessary necessary adjustments. Such adjustments should reflect the final differences in the assessment of the articles of financial statements between the old and revised accounting policies for each previous reporting date (reporting period), respectively.

If the voluntary change in accounting policy or the initial application of any standard affects the current or previous period, except when it is almost impossible to determine the amount of adjustment, and it could also affect future periods, then the credit institution must disclose the following information (paragraph 28 , 29 IAS 8):

• the nature of the change and reasons for which the application of a new accounting policy provides reliable and more appropriate information (with voluntary change in accounting policies);
• his name, indicating that changes in accounting policies are carried out in accordance with its transitional provisions, a description of these transitional provisions and their possible impact on future periods, as well as the nature of the changes in accounting policies themselves (when applying new or revised IFRS).

In both cases, the following quantitative and practical information is revealed:

1. the amount of adjustment for the current and each of the presented periods to the extent that it is practically feasible: for each affected by a change in the financial statements and for basic and divorced earnings per share, if IAS 33 "profit per share" is applied in a credit institution ;
2. the amount of adjustment relating to the periods preceding presented to the extent that it is practically feasible;
3. if retrospective application is almost impossible for a certain previous period or periods preceding submitted, the circumstances that led to the presence of such a condition and a description of how and from what moment the change in accounting policies was applied.

Repeating the disclosure of this information in the financial statements of subsequent periods is not required.

It is important that the effect of the influence of a new accounting policy on financial statements is disclosed not only in relation to previous periods, for which previously financial statements have already been formed, but also for the current reporting period. As a result, in order to include in the notes, all the necessary disclosures, a credit institution actually, it is necessary to calculate the values \u200b\u200bof the articles of financial statements for the current period of both the new and previous accounting policies.

In the event of a retrospective application of accounting policies in financial statements, the volume of comparative information is increasing. According to paragraph 39 of IAS (IAS) 1 "Representation of Financial Reporting" in such a situation, a credit institution should submit a minimum of three financial statements in the financial statements, two reports of other types and relevant notes. Financial reports are presented at the date:

• termination of the current period;
• the end of the previous period (which coincides with the beginning of the current period);
• the beginning of the earliest comparative period.

Finally, in accordance with paragraph 106, 110 of IAS (IAS) 1, information on the final amounts of adjustments for each capital component should be disclosed in the report of changes in own funds for each capital component separately as a result of changes in accounting policies. Such adjustments are subject to disclosure for each previous period and at the beginning of the current period.

Example 6.

In 2013, the Bank decided to change his accounting policy regarding the real estate accounting model, namely, to go from the previously used accounting model for the revalued value to the accounting model for actual costs. This transition was due to significant fluctuations in market prices for real estate and the lack of intent to sell or change the purpose of using objects in the future.

As mentioned above, such a change in the accounting model should be considered as a voluntary change in accounting policies that are subject to retrospective use. Consequently, the cost of fixed assets to all previous reporting dates as far as possible should be recalculated without taking into account the reflection of the revaluation. Considering the fixed assets of the profit and loss article (for example, accumulated depreciation for the period, financial result from the disposal of fixed assets, etc.), and the value of lowland taxes is adjusted due to the change in the book value of fixed assets . Appropriately, it is necessary to recalculate the magnitude of such capital articles, as the fund of revaluation of fixed assets and retained earnings.

In connection with the retrospective change in the accounting policy in the reporting for 2013, it is necessary to submit a report on the financial position (and notes to it) for three dates: December 31, 2013, December 31, 2012 and December 31, 2011, and other reports - Over two years: 2013 and 2012, indicators in all reports, in addition to the report on changes in their own capital, must be given already in the recalculated value according to the revised accounting policies.

The report on changes in equity should be disclosed to each component of capital for their own funds as of December 31, 2011 and December 31, 2012, as well as for aggregate income for 2012. The approximate format of the report report The composition of own funds for the year ended December 31, 2013 is given in Table. one.

In notes to financial statements in the section on changes in accounting policies, appropriate information about the change and retrospective application of accounting policies should be provided.

An approximate text of such disclosure, as well as a quantitative assessment of the impact of changes in accounting policies on financial reporting indicators is below:

"In 2013, the Bank decided to change his accounting policies regarding fixed assets, namely, apply the accounting model for actual costs (less accumulated depreciation and impairment) for all groups of fixed assets. In the previous reporting periods, such a model was used for all groups of fixed assets, with the exception of real estate objects for which a model for overvalued value was used (less accumulated depreciation).

According to the bank's leadership expectations, the change in accounting policy will contribute to the presentation of more reliable and relevant information, since the real estate market is subject to strong price fluctuations, as a result of which the fair value of real estate objects can be both higher and below their value of use.

The bank does not imply in the foreseeable future to sell or change the method of using real estate objects classified as fixed assets, and intends to further use them to provide services or administrative purposes. In this regard, the Bank's management believes that accounting for all groups of fixed assets Including real estate facilities on the basis of a model for actual costs less accumulated depreciation and impairment will provide more relevant and reliable information reflecting a way to obtain future economic benefits from fixed assets.

According to IAS 8, "accounting policies, changes in accounting assessments and errors", the change in accounting policy has been reflected retrospectively. For this purpose, an incoming balance of each affected component of equity for the earliest submitted period (2012) and other relevant amounts disclosed for each submitted preceding period, as if the new accounting policies were always applied, were adjusted. Also deferred tax assets (obligations) were recalculated in connection with the change in the book value of fixed assets due to changes in accounting policies.

Adjustment to each component of own funds for each previous period and at the beginning of the current period are given in the report on changes in their own funds. Excluded changes in the accounting policy did not affect the indicators of the cash flow report.

In tab. 2, 3 shows the impact of changes in accounting policies on the Bank's financial statements of the Bank as of December 31, 2013 and December 31, 2012.

A similar table in a note should also be given to compare indicators according to the new and previous accounting policies as of December 31, 2011.

Table 1

Report on changes in own funds for the year ended December 31, 2013 (thousand rubles)

table 2

The impact of changes in accounting policies on the data of the Bank's financial statements as of December 31, 2013 (thousand rubles)

Table 3.

The impact of changes in accounting policies for the Bank's financial statements as of December 31, 2012 (thousand rubles)

findings

Change in accounting policies is often applied retrospectively, which makes it possible to provide comparable, reliable and relevant information in the financial statements. At the same time, the retrospective application of changes in accounting policies requires sometimes significant labor costs both to prepare the necessary settlements and on the disclosure of relevant information. It should be especially close to the issue of classification of certain amendments: changes in accounting policies, changes in accounting estimates, corrections of errors of previous periods.

The main goal of IFRS 8 "Accounting Policy, Changes in Accounting Policy and Error" is the establishment of criteria according to which the methods of reflection in accounting and reporting changes in the company's accounting policies, accounting assessments, and errors are determined. The new version of the standard was adopted on December 18, 2003 and enters into force from January 2005. This means that all changes that occurred in the standard should be applied not only to reporting for 2005, but also to comparative data for 2004. Together with the revised IFRS 8, it is necessary to use PKI 2 "The principle of the sequence - capitalization of loans" and PKI 18 "The principle of sequence - alternative methods".

The new edition of the standard in order to unify the principles of reflection of errors does not allow the use of an "alternative" reflection method in the accounting accounting of errors of previous periods, which suggested correction of data on net profit or loss of the current period without correcting information for previous periods. Also excluded the concept of "fundamental mistake

ki "(In the previous version of the standard, the fundamental was recognized by the error identified in the current period, as a result of which the emergence of which financial statements for one or more preceding periods could not be considered reliable at the time of its release).

Personal experience

Sergey Moder,head of Financial Accounting for International Standards Institute for Entrepreneurship Problem (St. Petersburg) Reducing the number of permissible accounting methods, namely, the exception of the "alternative" method of reflection of errors is a consequence of the approach of IFRS and the US GAAP. In addition, this will ensure a greater degree of comparability of financial statements for several periods.

Formation of accounting policies

In accordance with IFRS, accounting policies are a document containing specific principles, methods, procedures, rules and practices of the application of IFRS adopted by the Company for the preparation and submission of financial statements.

In the absence of an appropriate standard of international financial statements, which determines the procedure for taking into account this or that operation of financial and economic activities, the company must be guided by his own opinion in the formation of accounting principles based on the provisions and concept of IFRS.

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

1. Consider standards and existing interpretations of standards that are associated with similar operations.
2. Use those principles and regulations on 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 States).
3. Contact the latest statements of state national authorities regulating accounting and reporting that use an approach similar to framework principles. You can also use any literature in which questions of accounting and the current sectoral practice. However, this should not be contrary to IFRS and framework principles.

Sergey Moder In practice, it was necessary to deal with situations where international financial reporting standards did not contain the necessary instructions on some accounting objects. It concerned metering in mining companies. In IFRS, there is no specialized standard for producing industries, there are only IFRS 6 "exploration and assessment of mineral resources". However, this standard does not respond to all issues on accounting for licenses and other intangible assets in the extractive industry, as well as the question of assessing the assets of the mining company. In practice, when developing accounting policies, in accordance with IFRS 1, the "submission of financial statements" and the principles of international standards had to use the provisions of Russian accounting standards, as well as the relevant standards of the US GAAP, which was made to the accounting policies.

Denis Davidko,deputy General Director for Corporate Investments and Capital Markets OJSC Open Investments (Moscow)In our practice, there were no such operations for which the principles of accounting were not identified in international financial statements. IFRS, in contrast to Russian standards, contains the principles that cover the entire range of business operations, assets and liabilities of the enterprise. And even if there is no specific mention of this or

another accounting object, then relying on the principles and approaches set forth in standards, and interacting with the auditor, any professional accountant or the controller will always be able to develop accounting rules. It seems to me that difficulties may occur only when classifying accounting objects, but not when developing accounting principles reflected in accounting policies.

Choosing the appropriate accounting policy, the enterprise should apply it sequentially on similar operations and events. For financial statements, it is important to be able to compare financial data for several reporting periods to determine the trends and financial position of the company, as well as assess the results of the company's activities and the ability to generate cash flows.

Changes in accounting policies

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

- changed requirements of standards or interpretations;

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

Personal experience

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

Igor Dmitriev,senior Specialist Department of International Projects of Baker Tilly Rusaudit (Moscow) As our experience shows, the use of IFRS 8 is currently not caused. The standard itself is quite concrete and not contradictory. In addition, the practice of using IFRS 8 in our country is still limited. Most enterprises their reporting under IFRS are one to three years. The conditions of such enterprises did not have time to change so much so that it was necessary to change the accounting policies or accounting assessments.

Excerpts from the accounting policy of the Mining and Metallurgical Company Norilsk NickelThe sections of accounting policies are given, which give an idea of \u200b\u200bwhat is included in the content of the company's accounting policy in accordance with the requirements of IFRS.

1. Consolidation method.

2. Measurement currency and presentation currency.

3. Balance indicators and income statements expressed in foreign currency.

4. Fixed assets.

5. Inscribed capital construction.

6. Cost reduction.

7. Expenses for research and exploration work.

8. Inventory stocks.

9. Financial tools.

10. Leasing of metals and repo agreements.

11. The cost of attracting borrowed funds.

12. Reserves.

13. Employee remuneration.

14. Own shares repurchased from shareholders.

15. Taxation.

16. Receal recognition.

17. Contracts for the sale of goods.

18. Operating lease.

19. Dividends announced.

20. Information on segments.

21. Government grants.

22. Costs for the withdrawal of fixed assets.

23. Current environmental restoration costs.

If the accounting policy adjustment is caused by new requirements of standards, changes in reporting should be reflected in accordance with the transitional provisions contained in the new version of IFRS 8. Otherwise, changes in accounting policies are reflected in the financial statements of past periods as if a new accounting Policy has always been applied (retrospective approach). At the same time, the initial balance of retained earnings is adjusted and comparative indicators referred to in the reporting. If the retrospective recalculation of indicators for the previous period is unjustified (significant adjustment costs are significant, it is allowed to make changes only to the reporting of the current period and the provision of necessary clarifications in the annex to the financial statements.

Example 1.

The company "A" began developing a new production line from January 1, 2001 and all costs associated with the launch of the line, in accordance with IFRS 16 "fixed assets" and IFRS 38 "Intangible assets" (it was assumed that the introduction of a new line will lead to An increase in the cost of Goodwill Company) reflected both investments in fixed assets and intangible assets. In 2004, the director of the company decided that this year and in the future the cost of development of production should be reflected as current costs of income and loss. This change was caused by the fact that the future economic efficiency of investments was questioned. Financial information before making changes to the accounting policy is given in Table. one.

The report on capital change for 2003 reflected the following information (in thousands of US dollars): - retained earnings of past years - 3040;

- Profit of the reporting period - 2150;

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

In connection with the change in the accounting policy, the enterprise requires adjustments to the reporting of past periods, which falls under this change, as if the new accounting policy was applied in previous periods (write-off of all costs of development as current spending on account and loss accounts). Consequently, it is necessary to adjust (increase) the cost of current spending of past periods:

400 thousand US dollars for 2001;

340 thousand US dollars for 2002;

350 thousand US dollars for 2003. Thus, the company's retained earnings as of the end of 2004 should be $ 1090,000 less than the previously reflected profit of $ 5190,000 (see Table 2).

When making changes to the company's accounting policy, it is necessary to disclose the following changes in the changes in the reporting:

- the name of the standard or PKI, which caused the changes in accounting policies;

- the nature of changes in accounting policies;

- description of the principles of transition to new accounting policies;

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

- Description and explanation of how changes will be made in the accounting policy in reporting in cases where the adjustment of the previous periods is unjustified.

Table 1The cost of developing a new production line, thousand US dollars

Due to the uncertainty, which is always present in the course of financial and economic activities of the enterprise, there are many articles in financial statements that cannot be accurately appreciated. When evaluating such articles, the latest and most reliable information existing on the date of the assessment is used. An example of such articles can be:

Reserves for doubtful and overdue receivables;

Useful use of fixed assets;

Market value of investment.

According to IFRS 8, the revision of accounting estimates is not considered as an error, respectively, the reporting of past periods will not be prone to adjustments. Profit (loss) of the company should be adjusted for the effect (increase or decrease in the value of assets, costs and income) from the revision of accounting estimates. Changes in accounting estimates are reflected in the current and future reporting periods, if this change affects several periods. For example, changes in the evaluation of the reserve for doubtful and hopeless debts will be concerned only the current reporting period. Changes in the duration of the useful life

the fixed assets will be reflected by adjusting the depreciation rate in the current and subsequent periods until the deadline for the service life of the main fund. The nature and financial influence of changes in accounting estimates should be disclosed in financial statements.

Recognition and reflection of errors

Errors according to IFRS are recognized by mathematical miscalculations identified in the current period, incorrect or inconsistent application of the Company's accounting policy, as well as a deliberate deception.

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

Table 3.The profit and loss statement of the company B ", thousands of US dollars

it is required to determine what is the reason for the proposed errors: incorrect interpretation of the available information or a change in the event (for example, a new specialist is reporting). Despite the fact that the decision of this issue cannot be unambiguous, in most border cases, the reflection of adjustments as changes in accounting estimates is more substantiated.

The error that emerged in the reporting of the last period should be corrected in the first new reporting of the company. In this case, the comparative data in current reporting should also be adjusted. If the error was detected before the preparation of the first reporting itself, the adjustments are made to the incoming balances of assets, liabilities and capital. Correction of past years in current financial statements is not carried out, as the error must already be corrected in the reporting of past periods. According to identified errors, the company is obliged to disclose the nature of the error and the size of the adjustment for each of the periods.

Example 2.

When preparing a preliminary reporting option for 2004, the company "B" has found an error in assessing the balance of inventories at the end of last period. This led to a decrease in the cost of realized products and, as a result, to an increase in profits before tax. Accordingly, in order to reliably reflect the data on the financial condition of the company, the cost of realized products in 2003 was increased by $ 5 million and reduced this amount in 2004. With this in mind, the financial results and the amount of income tax (rate 24%) were revised (see Table 3).

Differences of IFRS from RAS

The essential difference between IFRS 8 from Russian accounting standards is that RAS does not imply reporting adjustments for previous periods in the event of a change in accounting policies or error detection.

Personal experience

Evgeny Samoilov,general Director of Baker Tilly Rusaudit (Moscow)In various PBUs and orders of the Ministry of Finance of Russia, the issues considered in IFRS 8 are mentioned, but there is no document that generalizes all issues. In addition, there are significant differences between IFRS and the Russian accounting system in terms of error reflection. In Russian practice, all the mistakes of past years, regardless of their materiality, are reflected in the reporting of the period in which they were identified. In accordance with PBU 9/99 "Revenues of the Organization" and PBU 10/99 "The Expenses of the Organization" of the profit and losses of past years, identified in the reporting year, are recognized by non-dealerization income and non-dealerization costs. Practice shows that some enterprises have the profits of the reporting year, obtained in accordance with Russian accounting standards, can more than half consisting of the profits of past years identified in the reporting year (or vice versa, most of the losses were formed in the past years). In IFRS, the principle of temporary certainty of the facts of economic activity is one of the fundamental. IFRS 8 requires retrospective reflection of reporting data in case of detection of fundamental (significant) errors.

Sergey Moder

In Russian accounting analogue of IFRS 8 "Accounting policies, changes in accounting assessments and errors", as well as IFRS 1 "Presentation of Financial Reporting" is PBU 1/98 "Organization's Accounting Policy". The main difference between the RAS from IFRS is in various approaches to accounting policies.

In Russian accounting to accounting policies often refer to the "necessary evil", still making it on the general template. The formation of an IFRS accounting policy is a time-consuming process that requires the active participation of top management, since it is important to take into account the company's strategic goals. IFRS are the rules of reporting, and not accounting, so accountant's accountant forms himself, creating rules, the execution of which will allow "to collect information" for financial statements.