SOCPA Adopts the Amendments of IASB on International Accounting Standard No. 8
The Saudi Organization for Chartered and Professional Accountants has adopted the amendments made by the International Accounting Standards Board to IAS 8: This update aims to provide a more specific definition of accounting estimates and to reformulate the examples contained in the standard related to other standards to match the formulation of those standards that were issued after this standard.
It should be noted that the International Board has taken the proposal of SOCPA submitted to the Board not to address the methods of determining the cost of inventory in this amendment, as SOCPA indicated that it is not appropriate to consider the choice of methods for determining the cost of inventory (first in first out or average cost) as examples for choosing accounting policies, instead of the same applies to choosing a method for determining the cost of inventory, which is to a large extent similar to the methods of determining depreciation. Accordingly, and for other considerations related to the scope of the amendment, IASB excluded from the amendment reference to methods of determining the cost of inventory.