Topic list Syllabus reference

Impracticable. Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply a change in an accounting policy retrospectively or to make a retrospective restatement to correct an error if one of the following apply.
The effects of the retrospective application or retrospective restatement are not determinable.
The retrospective application or retrospective restatement requires assumptions about what management's intent would have been in that period.
The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that:

1. 
   Provides evidence of circumstances that existed on the date(s) at which those amounts are to be recognised, measured or disclosed
   
2. 
   Would have been available when the financial statements for that prior period were authorised for issue, from other information
   

(IAS 8: para. 5)

2. 
   Accounting policies
   

Accounting policies are determined by applying the relevant standard and using any supporting and relevant Implementation Guidance issued by the IASB.
Management may be required to use their judgement in applying an accounting policy to ensure that the financial statements provide relevant and reliable information to the users. They may also consider the most recent pronouncements of other standard setting bodies that use similar bases to develop standards as well as referring to practices established within their industry. However, the accounting policies they choose should not deviate from the principles laid out in the standards and the Conceptual Framework.
Accounting policies must be consistently applied for similar transactions, categories, other events and conditions. The exception being if a standard requires or permits categorisation of items for which different policies may be appropriate.