PAGE1

FI
NANCI
ALACCOUNTI
NGANDREPORTI
NG

ACCOUNTINGPOLI
CIES,
CHANGESI
NACCOUNTINGESTI
MATESANDERRORS

1.Account
ingPol
i
cies

 Account
ingpol
i
ciesar
ethespeci
fi
cpr
inci
ples,bases,conv
ent
ions,r
ulesandpr
act
ices
appl
i
edbyanent
it
yinpr
epar
ingandpr
esent
ingf
inanci
alst
atement
s.

 An ent
it
y shal
lsel
ectand appl
yit
s account
ing pol
i
cies consi
stent
lyf
orsi
mil
ar
tr
ansacti
ons,otherevent
s and condi
tions,unl
ess a Standar
d oran Int
erpr
etat
ion
speci
fi
call
yrequir
esorper
mitscategor
izati
onofit
emsf orwhichdif
fer
entpol
ici
esmay
beappropri
ate.
 I
fa St
andar
d oran I
nter
pret
ati
on r
equi
res orper
mit
s such cat
egor
izat
ion,an
appropr
iat
e account
ing pol
i
cyshal
lbe sel
ect
ed and appl
i
ed consi
stent
lyt
o each
categor
y.

. Changei nAccount
ingPol
icy–Achangef r
om oneacceptabl
eaccount
ingpol
icyt
oanot
her
acceptabl
eaccount
ingpol
icy
.Ift
hechangeisf
rom anunaccept
abl
eaccount
ingpol
i
cyi
tshal
l
betreatedasacorr
ecti
onofaner
ror
.

 Casesorci
rcumst
ancest
ochangeaccount
ingpol
i
cy:

a.I
srequi
redbyast
andar
dori
nter
pret
ati
on;
or

b.Resul
tsinthef inanci
alstatementspr ov
idi
ngrel
i
abl
eandmor er
elev
anti
nfor
mation
abouttheeffectsoft r
ansacti
ons,otherevent
sorcondi
ti
onsont
heenti
ty'
sfi
nancial
posi
ti
on,fi
nancialperf
ormance,orcashf l
ows.

c. Notethatchangesinaccounti
ngpoli
ciesdonotincl
udeapply
inganaccounti
ngpol
icy
toakindoftransact
ionoreventt
hatdi
dnotexistint
hepast.Neit
herisachangef
rom
aaccountingprinci
plet
hatisnotacceptabl
et oonethatisacceptabl
eachangei n
account
ingpoli
cy.

 Tr
eat
mentofChangesi
nAccount
ingPol
i
cies

Byapplyi
ngthetransit
ionalpr
ovisi
onifthechangei
sei
therr
equi
redbyast
andar
dor
i
nter
pret
ati
onorRetrospecti
veAppli
cat
ion

Ret
rospect
ive appli
cati
on means adjusti
ng the openi
ng balance of each af
fect
ed
componentofequi t
yf ortheear
li
estpriorperi
odpresent
edandt heothercomparat
ive
amountsdiscl
osedf oreachpri
orperi
odpr edasi
esent fthenew accounti
ngpoli
cyhad
al
waysbeenapplied.

 However
,ifi
tisi
mpr
act
icabl
etodet
ermi
neei
thert
heper
iod,speci
fi
cef
fect
sort
he
cumul ati
veeff
ectofthechangef oroneormorepr
iorperi
odspr esented,t
heent i
tyshall
applyt henewaccounti
ngpol i
cyt othecar
ryi
ngamountsofasset sandli
abil
iti
esasat
thebegi nni
ngoft heearl
i
estper i
odf orwhi
chret
rospecti
veappl i
cati
onispr acti
cable,
whichmaybet hecurr
entperiod,andshallmakeacor respondingadjustmentt othe
openingbalanceofeachaffect
edcomponentofequityforthatperiod.

 Al
so,i
fiti
simpr
act
icabl
etodet
ermi
net
hecumul
ati
veef
fect
,att
hebegi
nni
ngoft
he
curr
entperi
od,ofapplyi
nganewaccounti
ngpol
icyt
oallpriorper
iods,theenti
tyshal
l
adj
ustthecompar ati
veinf
ormationt
oappl
ythenew accounti
ngpolicyprospect
ivel
y
fr
om theearl
iestdat
epract
icabl
e.

10/
16-
8
 PAGE2
2.Changesi
nAccount
ingEst
imat
e

 Achangei
naccount
ingest
imat
eisanadj
ust
mentoft
hecar
ryi
ngamountofanassetor
l
iabi
li
ty,orr
elat
edexpense,resul
ti
ngf r
om reassessi
ngt
heexpect
edf
utur
ebenef
it
sand
obli
gat
ionsassoci
atedwi
ththatassetorl
iabi
l
ity
.

 Account
ingest
imat
esr
esul
tfr
om uncer
tai
nti
esi
nher
enti
nbusi
nessact
ivi
ti
est
hatmany
i
temscannotbemeasuredwit
haccuracybutcanonlybeest
imat
ed.Exampl
esofwhich
arebaddebt
srat
e,f
act
orsusedincomputi
ngfordepr
eci
ati
onandwar
rant
yobl
i
gat
ions.
 Changesi
naccount
ingest
imat
esar
enor
malandr
ecur
ri
ngchangest
hati
snecessar
yif
changesoccuri
ntheci
rcumstancesonwhi
cht
heest
imat
ewasbasedorasar
esul
tofnew
i
nformati
onormoreexperi
ence.
 Theef
fectofachangei
nanaccount
ingest
imat
eshal
lber
ecogni
zedpr
ospect
ivel
yby
i
ncl
udi
ngi
tinpr
ofi
torl
ossi
n:
 Theper
iodoft
hechange,
ift
hechangeaffect
sthatperi
odonl
y;or
 Theper
iodoft
hechangeandfut
ureper
iods,i
fthechangeaf
fect
sbot
h.
 Howev er
,totheextentthatachangei nanaccountingestimategi
vesri
setochangesin
assetsandli
abil
it
ies,orr elat
estoani tem ofequity
,itisrecogni
zedbyadjust
ingthe
carr
yingamountoftherelatedasset
,li
abi
l
ity
,orequi
tyitem i
ntheperi
odoft
hechange.
 Wheni tisdif
fi
cul
ttodi
sti
ngui
shthechangei
sinaccount
ingpoli
cyfrom achangei
n
account
ingest
imat
e,t
hechangei
str
eat
edasachangei
naccount
ingest
imate.

3.Er
ror
s
 Pr
iorper
iod er
ror
s ar
e omi
ssi
ons f
rom,and mi
sst
atement
sin,an ent
it
y'
sfi
nanci
al
statement sf oroneormor epriorperiodsari
singfrom afai
l
uretouse,ormisuseof ,
reli
abl
e
i
nf ormationt hatwasav ail
ableandcoul dreasonablybeexpectedtohav ebeenobt ai
ned
and t aken i nto account i n pr epari
ng those statements.Such errorsr esul
tf rom
mat hemat ical mistakes, mi stakes i n applyi
ng accounting pol
i
cies, oversi
ghts or
mi si
nterpretati
onsoff acts,andf r
aud.
 Thegeneralpri
nci
plei
nPAS8i sthatanentit
ymustcorr
ectal
lmater
ialpr
iorper
ioder
ror
s
retr
ospect
ivel
yinthef i
rstsetoffinanci
alstat
ement
sauthori
zed f
orissueaf t
ert
heir
discov
eryby:
 Rest
ati
ngt
hecompar
ati
veamount
sfort
hepr
iorper
iod(
s)pr
esent
edi
nwhi
cht
heer
ror
occur
red;
or
 I
ftheer
roroccur
redbef
oret
heear
li
estpr
iorper
iodpr
esent
ed,r
est
ati
ngt
heopeni
ng
bal
ancesofasset
s,l
i
abi
l
iti
esandequi
tyf
ort
heear
li
estpr
iorper
iodpr
esent
ed.
 However
,ifi
tisi
mpr
act
icabl
etodet
ermi
net
heper
iod-
speci
fi
cef
fect
sofaner
roron
comparati
veinformat
ionf oroneormor epri
orperiodspresented,theent i
tymust
rest
atetheopeningbalancesofasset
s,li
abi
l
iti
es,andequi
tyfortheear l
iestper
iodf
or
whichretr
ospect
iver
estatementi
spracti
cabl
e(whichmaybet hecurrentperi
od).
 Fur
ther
,ifi
tisi
mpr
act
icabl
etodet
ermi
net
hecumul
ati
veef
fect
,att
hebegi
nni
ngoft
he
cur
rentperi
od,ofaner
roronal
lpri
orperi
ods,theent
it
ymustr est
atethecompar
ati
ve
i
nformati
ontocorr
ectt
heerr
orpr
ospect
ivel
yfrom t
heearl
i
estdatepract
icabl
e.

Di
scl
osur
esRel
ati
ngt
oPr
iorPer
iodEr
ror
s
 Di
scl
osur
esr
elat
ingt
opr
iorper
ioder
ror
sincl
ude:
 Thenatur
eoft hepr iorperi
oderror
 Foreachpri
orperiodpr esented,t
otheext entpracti
cabl
e, t
heamountofthecor r
ect
ion:
 Foreachfi
nancialstatementl i
neit
em affected
 Forbasi
canddi l
utedear ni
ngspershar
e( onlyiftheenti
tyisapplyi
ngPAS33)
 Theamountoft hecor r
ecti
onatthebeginningoft heearl
iestpr
iorper
iodpresent
ed
 Ifr
etr
ospecti
verest atementisimpract
icable,anexplanationanddescri
pti
onofhowt he
err
orhasbeencor rected.
 Fi
nanci
alst
atement
sofsubsequentper
iodsneednotr
epeatt
hesedi
scl
osur
es.

--END--

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16-
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