Prospective application is Prospective application of a change in accounting policy and of recognising the effect of a change in an accounting estimate, respectively, are:
(a) applying the new accounting policy to transactions, other events and conditions occurring after the date as at which the policy is changed; and
(b) recognising the effect of the change in the accounting estimate in the current and future periods affected by the change.
Prospective application is specifically discussed in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
Source: Glossary of Terms of IFRSs as at 31 December 2008.