IAS 8 · Case studies (Step 3 of 5)
Practical case
Version of this content
IAS 8 Basis of Preparation of Financial Statements (as amended by IFRS 18)
Applies to annual periods beginning on or after January 1, 2027. Early application permitted. Only together with early application of IFRS 18, which is permitted and must be disclosed in the notes (IAS 8, para. 54J; IFRS 18, para. C1).
Quorvel SA, a fictitious company that designs management software for hospitals (180 employees), IFRS financial statements, year end 31 December, amounts in euros. It applies IFRS 18 for the first time to the period beginning on 1 January 2027, with no early application (case data).
L1 · Guided · 2027 year end
Version applicable to annual reporting periods beginning on or after 1 January 2027; early application permitted only together with IFRS 18 (IFRS 18, para. C1). With the finance director, you prepare the "basis of preparation" and "accounting policies" notes of the 2027 accounts. Level 1: applicable version, compliance, going concern. Level 2: policy information, judgements and sources of uncertainty. Amounts, forecasts and management's assessments are case data; judgements are flagged as such.
Standard concerned: IAS 8 Basis of Preparation of Financial Statements, version amended by IFRS 18. Determine the applicable version, then check the compliance statement and the going concern basis. The questions are guided.
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Method
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Context · Dated fact of the file
Quorvel SA, a fictitious company that designs management software for hospitals (180 employees), IFRS financial statements, year end 31 December, amounts in euros. It applies IFRS 18 for the first time to the period beginning on 1 January 2027, with no early application (case data).
Initial event · L1·2027 year end · Current stage
Standard concerned: IAS 8 Basis of Preparation of Financial Statements, version amended by IFRS 18. Determine the applicable version, then check the compliance statement and the going concern basis. The questions are guided.
Pieces added
New period · L2·2027 notes · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
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Part 1 · Multiple choice · Knowledge
Which version of IAS 8 applies to Quorvel's 2027 accounts?
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