Accounting Policies and Accounting Estimates Proposed amendments to IAS 8



In this Exposure Draft, the IASB proposes to amend IAS 8. With the aim to help entities distinguish accounting policies from accounting estimates. More specifically, the proposed amendments would clarify:

(a) how accounting policies and accounting estimates relate to each other, by:

(i) explaining that accounting estimates are used in applying accounting policies; and

(ii) making the definition of accounting policies clearer and more concise;

(b) that selecting an estimation technique, or valuation technique, used when an item in the financial statements cannot be measured with precision, constitutes making an accounting estimate; and

(c) that, in applying IAS 2 Inventories, selecting the first-in, first-out (FIFO) cost formula or the weighted average cost formula for interchangeable inventories constitutes selecting an accounting policy.

Invitation to comment


ASB invites comments on the Exposure Draft from the public.


How to comment


Comments should be submitted using one of the following methods, so as to be received not later than November 30, 2017




Click on "Submit a comment letter" below (Preferred method)



Comments can be sent to: 



Secretary, Accounting Standards Board,



The Institute of Chartered Accountants of India,

 ICAI Bhawan, Post Box No. 7100,

Indraprastha Marg, New Delhi 110 002



Further clarifications on this Exposure Draft may be sought by e-mail to

Comment letter deadline

The Exposure Draft is open for comment until 30th November, 2017

Due process documents
Accounting Policies and Accounting Estimates Proposed amendments to IAS 8  [PDF]