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    Pas 8

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    Aaron Jusayan

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    © All Rights Reserved
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    Pas 8

    Uploaded by

    Aaron Jusayan
    13 views13 pages

    Original Title

    PAS-8

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    © © All Rights Reserved

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    13 views13 pages

    Pas 8

    Uploaded by

    Aaron Jusayan

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    PAS 8: ACCOUNTING POLICIES,

    CHANGES IN ACCOUNTING
    ESTIMATES AND ERRORS
    CONTENT

    • Objective and Scope


    • Accounting Policies
    • Hierarchy of Reporting Standards
    • Changes in Accounting Policies and Changes in Accounting
    Estimate
    • Errors
    OBJECTIVE AND SCOPE
    • PAS 8 prescribes the criteria for selecting, applying, and changing
    accounting policies and the accounting and disclosure of changes in
    accounting policies, changes in accounting estimates and correction of
    prior period errors
    • For all IAS 8 issues
    ACCOUNTING POLICIES

    • the specific principles, bases, conventions, rules and


    practices applied by an entity in preparing and
    presenting financial statements
    HIERARCHY OF REPORTING STANDARDS

    Philippine Financial Reporting Standards (PFRSs) are Standards and Interpretations


    adopted by the Financial Reporting Standards Council (FRSC). They comprise the
    following:
    1. Philippine Financial Reporting Standards (PFRSs);
    2. Philippine Accounting Standards (PASS); and
    3. Interpretations
    HIERARCHY OF REPORTING STANDARDS

    Judgment
    • Management shall consider the following:
    a. Requirements in other PFRSs dealing with similar transactions
    b. Conceptual Framework
    • Management may consider the following:
    a. Pronouncements issued by other standard-setting bodies
    b. Other accounting literature and industry practices
    Scope of PAS 8 Accounting Effect of
    Description Treatment Adjustment
    Change in Change in a. Transitional provision On the
    Accounting Policy measurement basis b. Retrospective application Beginning balance
    c. if (b) is impracticable, of retained earning, if
    prospective application accounted for retrospectively.

    Change in Accounting Changes in the realization (or Prospective application In profit or loss
    Estimate incurrence) of expected of current period or current
    inflow (or outflow) of and future periods, if the
    Economic benefits change affects both.
    from assets (or liabilities)

    Correction of prior period Misapplication of a. Retrospective restatement On the


    error principles, oversight or b. If (b) is impracticable, Beginning balance
    misinterpretation of facts and prospective application. of retained earning , if
    mathematical mistakes accounted for retrospectively.
    • When it is difficult to distinguish a change in accounting policy
    from a change in accounting estimate, the change is treated as a
    change in an accounting estimate
    • A voluntary change in accounting policy is accounted for by
    retrospective application. Early application of a PFRS is not a
    voluntary change in accounting policy
    EXAMPLES OF CHANGES IN ACCOUNTING
    POLICY
    • Change from the FIFO cost formula for inventories to the
    Average cost formula.
    • Change in the method of recognizing revenue from long-term
    construction contracts.
    • Change to a new policy resulting from the requirement of a
    new PFRS.
    EXAMPLES OF CHANGES IN ACCOUNTING
    ESTIMATE
    • Change in depreciation or amortization methods
    • Change in estimated useful lives of depreciable assets
    • Change in estimated residual values of depreciable assets
    • Change in required allowances for impairment losses and
    uncollectible accounts
    ERRORS

    • Errors include the effects of:


    Mathematical mistakes
    Mistakes in applying accounting policies
    Oversights or misinterpretations of facts; and
    Fraud
    THANK YOU FOR
    LISTENING

    REPORTED BY:
    Celones, Akira Ken
    Tindoy, Leonel
    REFERENCES

    • Updated PAS-8-ACCTG-Policies-Changes-in-ACCTG-Estimates-Errors.pptx. (2023,


    September 22). [Slide show]. SlideShare.
    https://www.slideshare.net/JeanethDCarnicer/updated-pas8acctgpolicieschangesinacct
    gestimateserrorspptx
    • Bautista, F. (n.d.-b). PAS 8. Scribd.https
    ://www.scribd.com/document/508281550/PAS-8
    • IAS 8 — Accounting policies, changes in accounting estimates and errors. (n.d.).
    https://www.iasplus.com/en/standards/ias/ias8

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