BC7.10 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors [When it issued IFRS 18, the IASB changed the title of IAS 8.] states that retrospective application results in the most useful information to users because the information presented for all periods is comparable. Consequently, the 2009 Classification and Measurement Exposure Draft proposed retrospective application subject to some transition relief in particular circumstances. The IASB considered the difficulties and associated costs of full retrospective application of the proposals in the 2009 Classification and Measurement Exposure Draft.

BC7.11 Most respondents agreed, in principle, with requiring retrospective application, but many questioned the practicability of the approach. In particular, many noted that the extensive exceptions to retrospective application that would be required to make such transition practicable significantly reduced (and possibly eliminated) any benefit that users might obtain from requiring comparative information to be restated.

BC7.12 The IASB considered whether to require prospective application, but noted that such an approach does not provide comparable information for users of financial statements. In addition, the IASB noted that any transition approach (such as prospective application) that requires resetting the effective interest rate for financial assets measured at amortised cost reduces the usefulness of information about interest income.