Which of the following would require retrospective application in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors?

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, provides guidelines on how to handle changes in accounting policies, changes in accounting estimates, and the correction of errors.

According to IAS 8, the following would require retrospective application:

1. Changes in Accounting Policies: If an entity changes its accounting policy, it should apply the new policy retrospectively, meaning it should apply the new policy as if it had always been applied. This means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied.

2. Correction of Errors: If an entity identifies material prior period errors, it should correct these retrospectively in the first set of financial statements authorized for issue after their discovery by restating the comparative amounts for the prior period(s) presented in which the error occurred.

However, changes in accounting estimates are not dealt with retrospectively. They are recognized prospectively, i.e., in the period of the change and future periods if the change affects both.

Please note that retrospective application is not always possible when it is impracticable to determine the effects of a change in an accounting policy on comparative information for one or more prior periods presented.