NATIONAL ACCOUNTING REGULATION (STANDARD) 6 HAS BEEN UPDATED: WHAT HAS CHANGED SINCE 16 APRIL?
The Ministry of Finance in its Order No. 130 dated 18.03.2024 (registered with the Ministry of Justice on 04.04. 2024 under No. 493/41838) amended National Accounting Regulation (Standard) 6 "Corrections of Errors and Amendments to Financial Statements", aligning it with the requirements of national legislation and international financial reporting standards, in particular IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", IAS 10 "Events after the Reporting Period" and IFRS for Small and Medium-sized Enterprises on Accounting Estimates.
In particular, the amendments clarify that accounting estimates are monetary values of elements of financial statements that are not directly observable but are determined on an approximate basis, i.e., estimates. For example, these may include such indicators as the allowance for doubtful debts, the net value of inventories, the fair value of assets or liabilities, depreciation of fixed assets, or collateral for warranty obligations.
It also defines measurement as the process of determining the amount of money to be recognised and reported in financial statements. A change in an accounting estimate, by its nature, does not restate prior periods and does not constitute a correction of an error.
If a change in an accounting estimate results in a change in the amount of assets, liabilities or equity, the change is recognised by adjusting the carrying amount of the related asset, liability or equity in the period in which the change occurs.
If the effect of a change on future periods cannot be estimated reliably, an entity is required to disclose that information.
