(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009Retrospective application10.12 When a change in accounting policy is applied retrospectively in accordance withparagraph 10.11, the entity shall apply the new accounting policy to comparativeinformation for prior periods to the earliest date for which it is practicable, as ifthe new accounting policy had always been applied. When it is impracticable todetermine the individual-period effects of a change in accounting policy oncomparative information for one or more prior periods presented, the entity shallapply the new accounting policy to the carrying amounts of assets and liabilitiesas at the beginning of the earliest period for which retrospective application ispracticable, which may be the current period, and shall make a correspondingadjustment to the opening balance of each affected component of equity for thatperiod.Disclosure of a change in accounting policy10.13 When an amendment to this IFRS has an effect on the current period or any priorperiod, or might have an effect on future periods, an entity shall disclose thefollowing:(a)(b)(c)(d)the nature of the change in accounting policy.for the current period and each prior period presented, to the extentpracticable, the amount of the adjustment for each financial statementline item affected.the amount of the adjustment relating to periods before those presented,to the extent practicable.an explanation if it is impracticable to determine the amounts to bedisclosed in (b) or (c) above.Financial statements of subsequent periods need not repeat these disclosures.10.14 When a voluntary change in accounting policy has an effect on the current periodor any prior period, an entity shall disclose the following:(a)(b)(c)the nature of the change in accounting policy.the reasons why applying the new accounting policy provides reliable andmore relevant information.to the extent practicable, the amount of the adjustment for each financialstatement line item affected, shown separately:(i)(ii)(iii)for the current period;for each prior period presented; andin the aggregate for periods before those presented.(d)an explanation if it is impracticable to determine the amounts to bedisclosed in (c) above.Financial statements of subsequent periods need not repeat these disclosures.© IASCF 51