BC4 The previous version of IAS 8 included allowed alternative treatments of voluntary changes in accounting policies (paragraphs 54–57) and corrections of fundamental errors (paragraphs 38–40). Under those allowed alternatives:
(a) the adjustment resulting from retrospective application of a change in an accounting policy was included in profit or loss for the current period; and
(b) the amount of the correction of a fundamental error was included in profit or loss for the current period.
BC5 In both circumstances, comparative information was presented as it was presented in the financial statements of prior periods.
BC6 The Board identified the removal of optional treatments for changes in accounting policies and corrections of errors as an important improvement to the previous version of IAS 8. The Standard removes the allowed alternative treatments and requires changes in accounting policies and corrections of prior period errors to be accounted for retrospectively.
BC7 The Boa
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