IAS 8Chapter 7Lesson 1
Impracticability and the prohibition of hindsight
Step 1 of 8Learning objectives
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Going back into the past is impracticable when, after every reasonable effort, the effects cannot be determined, require assumptions about management's intent at the time or require significant estimates for which what was known then can no longer be objectively separated. Even when practicable, a restatement may never use information obtained with hindsight.
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Learning objectives
- Assess whether a restatement is impracticable in the light of the three situations provided for.
- Distinguish usable information (circumstances existing and available at authorisation for issue) from the prohibited use of later information.
- Calculate a restatement excluding information obtained with hindsight.