The IASB officially changed the title of IAS 8 on April 9, 2024, from its historical name, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, to a broader title: ‘Basis of Preparation of Financial Statements’. This change will take effect for reporting periods beginning on or after January 1, 2027, alongside the implementation of IFRS 18, with earlier application permitted.
The renaming was necessitated as a direct outcome of issuing IFRS 18 ‘Presentation and Disclosure in Financial Statements’, which completely replaces IAS 1 ‘Presentation of Financial Statements’. As part of this transition, the IASB carried over several foundational, general requirements for financial reporting from IAS 1 to IAS 8. These include:
- The concepts of fair presentation and compliance with IFRS Accounting Standards;
- The assessment of going concern;
- The accrual basis of accounting; and
- The disclosure of an entity’s selection and application of accounting policies.
Consequently, the scope of the original title became too narrow to reflect these structural updates. The IASB determined that these overarching framework requirements fit better within IAS 8 than the newly introduced IFRS 18. The updated title, ‘Basis of Preparation of Financial Statements’, accurately captures these substantial shifts and precisely reflects the standard’s expanded role in general financial reporting.
James Bakul Sarkar, Ph.D. Professor and Coordinator – BBA in AIS Program
United International University
June 26, 2026
