Hi,
Can you confirm if an increase in capitalisation threshold of PP&E does not fall under IAS 8 Change in Accounting Policies and hence no retrospective adjustment required? Instead, it is a materiality concept, is that correct?
IAS 8 - Change in capitalisation threshold
Re: IAS 8 - Change in capitalisation threshold
I would say it's not a policy; as the business grows in size your threshold might increase too but I don't see restatements as necessary; presumably the impact is almost by definition immaterial too.
Re: IAS 8 - Change in capitalisation threshold
It is a change in accounting policy but its impact must be immaterial by definition and hence applied prospectively. If the impact isn't immaterial, then you shouldn't have this policy in the first place because IAS 16 / IAS 38 don't have any practical expedient regading capitalisation threshold.