Classify IAS 8 changes as accounting policy changes, estimate changes, or prior-period errors.
Sort each proposed adjustment into the IAS 8 category that drives its accounting treatment. Use the change mechanism, not the size of the number. Accounting policy change Accounting estimate change Prior-period error Changing inventory cost formula from weighted average to FIFO for a better relevance case Revising useful life of a machine after new maintenance data becomes available Discovering a supplier invoice that was available before last year's accounts were authorized Changing expected credit loss rates after current-year default experience worsens Applying a new IFRS requirement that changes recognition principles for a transaction Finding that last year's lease liability formula…
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