IFRS for SMEs / Third edition changes / Section 8 in the third edition: material policies and judgements
Section 8 in the third edition: material policies and judgements
Section 8 carries the material accounting policy information requirement into the notes and gives examples of the judgements management should disclose.
What changes
- 8.5 Disclose material accounting policy information, including the measurement bases used.
- 8.6 Disclose the judgements, apart from estimates, that most affect the amounts recognised, with examples in the Standard.
What to prepare
- Write down the judgements actually made this year, such as whether a vehicle lease is a finance lease or whether a loan to a director is recoverable.
How Sight handles it
Sight records the company's standing accounting choices once, such as the capitalisation threshold and how expenses are classified, and applies them every year. The judgements disclosure itself is written by the accountant.
Section 8: Notes to the Financial Statements: the section in full.
Other third-edition changes
- Section 2 in the third edition: concepts and pervasive principles
- Section 3 in the third edition: material accounting policy information
- Section 4 in the third edition: disaggregating line items
- Section 6 in the third edition: dividends declared after year end
- Section 7 in the third edition: financing liabilities and supplier finance
- Section 11 in the third edition: one section for financial instruments, ageing and maturity
- Section 12 in the third edition: the new fair value section
- Section 19 in the third edition: business combinations
- Section 23 in the third edition: the five-step revenue model
- Section 29 in the third edition: uncertain tax treatments
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