(Effective prior to 1 January 2023) A change in an accounting estimate is “an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.”

(Effective for annual reporting periods beginning on or after 1 January 2023) Accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty.

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

International Financial Reporting Standards are Standards and Interpretations adopted by the International Accounting Standards Board. They comprise:

• International Financial Reporting Standards;

• International Accounting Standards;

• IFRIC Interpretations; and

• SIC Interpretations.

IFRS Standards are accompanied by guidance to assist entities applying their requirements. All such guidance states whether it is an integral part of IFRS Standards. Guidance that is an integral part of the IFRS Standards is mandatory; guidance that is not an integral part of the IFRS Standards does not contain requirements for financial statements.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. For a particular prior period, it is impracticable to apply a change in an accounting policy retrospectively or to make a retrospective restatement to correct an error if:

• 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; or

• The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that:

– Provides evidence of circumstances that existed on the date(s) as at which those amounts are to be recognized, measured or disclosed; and

– Would have been available when the financial statements for that prior period were authorized for issue from other information.

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.

Prior period errors are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that:

• Was available when financial statements for those periods were authorized for issue; and

• Could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.

Such errors include the effects of mathematical mistakes, mistakes in applying accounting policy, oversights or misinterpretations of facts, and fraud.

Prospective application of a change in accounting policy and of recognizing the effect of a change in accounting estimate are, respectively:

• Applying the new accounting policy to transactions, other events and circumstances occurring after the date as at which the policy is changed; and

• Recognizing and disclosing the effect of the changes in the accounting estimate in the periods affected by the change.

Retrospective application of a change in an accounting policy and of a correction of an error, are, respectively:

• Applying the new accounting policy to transactions, other events and circumstances as if that policy had always been in use; and

• Recognizing and disclosing the corrected amount(s) as if the error had never occurred.