IAS 8Chapter 4Lesson 3
Retrospective application: opening equity and comparatives
Step 1 of 9Learning objectives
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Applying a new policy retrospectively means presenting all periods as if it had always been applied: the opening balance of each affected component of equity for the earliest period presented and the other comparative amounts are adjusted. The tax effect follows IAS 12. Nothing goes through profit or loss of the year of the change.
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Learning objectives
- Calculate the adjustment to opening equity of the earliest period presented and the restated comparatives.
- Record the retrospective adjustment, including the tax effect.
- Prepare the as published / adjustment / restated table.
- Spot a flawed implementation (adjustment in profit or loss, comparatives not restated).