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ACCA Strategic Professional · Strategic Business Reporting (International) · Discussion of issues in financial reporting

Lowen Co's year ended 31 December 20X6. A new IFRS Standard was issued in October 20X6 with an effective date of 1 January 20X8 and early application permitted. Lowen Co has not early adopted it. Which statement reflects IAS 8 requirements?

IAS 8 requires an entity not yet applying an issued Standard to disclose that fact, the Standard's title, the nature of the change, its effective date, and known or reasonably estimable information about its impact on the financial statements. Application is not mandatory before the effective date.

  1. ANo disclosure is needed because the Standard is not yet effective
  2. BLowen Co must apply the Standard in 20X6 because it has been issued
  3. CLowen Co must disclose that the Standard is issued but not yet effective, and give known or reasonably estimable information on its likely impactCorrect
  4. DLowen Co must restate 20X6 comparatives as if the Standard were already applied

Explanation

IAS 8 requires disclosure of the title of an issued but not yet effective Standard, the nature of the coming change, its date of application and known or reasonably estimable impact. Early adoption is optional and no restatement is needed for a Standard not applied.

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