Changes in Accounting Estimate

In order to prepare financial statements, sometimes the management of the entity has to use its best judgment to give a value for certain items such as provision for doubtful debt, warrant claim etc. These estimates might go wrong and in such case, the management has to change its estimate. The changes in accounting estimate is required via a prospective effect that is change is applied from current and future periods and not from the past. IFRS 8 provides a complete guide on dealing with changes in accounting estimates.


  • Change in the {1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c} of the doubtful debt estimation
  • Change in useful life of the assets,
  • Change in the salvage value of the assets,
  • Change in the reserve of obsolete inventory,