Have your say on the new definition of an accounting estimate !

The Exposure Draft (ED) proposes to amend the definition of a change in accounting estimate in the Standard of GRAP on Accounting policies, Changes in Accounting Estimates and Errors (GRAP 3). This is due to stakeholders experiencing difficulties in distinguishing changes in accounting policies from changes in accounting estimates. The ED replaces the definition of a “change in accounting estimate” with the definition of ‘accounting estimate’. Accounting estimates are defined as monetary amounts in financial statements that are subject to measurement uncertainty.

The Board requests specific comment on the proposed improvement to GRAP 3 on the change in the definition of an accounting estimate to understand whether respondents:

• agree with the revised definition, and;
• foresee any practical implementation issues with revising the definition.

To respond to the questions, access the Exposure Draft here. The comment deadline is 28 April 2023.