IAS 8Chapter 4Lesson 4
Limitations on retrospective application
Step 1 of 8Learning objectives
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Retrospective application stops where it becomes impracticable. If the period-specific effects for some periods presented cannot be determined, the new policy is applied to carrying amounts at the beginning of the earliest practicable period, with an adjustment to opening equity of that period. If the cumulative effect at the beginning of the current period cannot be determined, the policy is applied prospectively from the earliest practicable date. Never with hindsight.
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Learning objectives
- Determine the earliest period for which retrospective application is practicable.
- Calculate the opening adjustment at the earliest practicable date.
- Justify the use of impracticability after every reasonable effort.