This document discusses accounting policies for changes in accounting principles, estimates, and errors according to IAS 8. It states that the objective is to prescribe criteria for selecting and changing accounting policies to enhance the relevance and reliability of financial statements. Changes in accounting principles are only allowed in exceptional circumstances to maintain comparability. Changes in estimates occur due to new information and conditions and must be revised. Errors discovered in approved financial statements make them unreliable and must be remedied. Adjusting entries are also discussed to accurately reflect account balances at the end of a period.

1. UNIVERSIDAD JOSE CARLOS
MARIATEGUI
FACULTAD:
CIENCIAS JURIDICAS, EMPRESARIALES Y PEDAGOGICAS
ESPECIALIDAD:
CONTABILIDAD IV
CURSO:
INGLES INTERMEDIO II
DOCENTE:
LIC. REGINA PEREIRA PIZARRO
INTEGRANTES:
 GIOVANA APAZA ARO
 ANCCA CHAMPI, LUZMA
 SECLEN ROJAS, GRACIELA
 PARIZACA VILCA. ANYELA
 SANTA CRUZ MAMANI, MONICA

2. IAS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors
The objective of this standard is to prescribe the criteria for
selecting and changing accounting policies, together with the
accounting treatment and disclosures about changes in
accounting policies, changes in accounting estimates and
correction of errors. The standard is intended to enhance the
relevance and reliability of financial statements of an entity,
as well as comparability with the financial statements issued
by this in previous years, and with those developed by other
entities.

3. Changes in Accounting Principles
In order that the accounting information is comparable, the
consistency principle requires that once adopted a criterion in the
application of accounting principles.
Consequently, only in exceptional circumstances allow a change in
accounting policy.
Includes both changes in accounting principles, the application of
these for example:
- Change in valuation of stocks
- Change in accounting treatment
- Changing the inventory method
- Change in profit or loss

4. Changes in Accounting Estimates
Because of the uncertainty inherent in the business, the
company must make estimates to value some items in the
financial statements, which can not be measured accurately.
Changes in estimates are due to changes in the conditions
underlying the estimate or further information to knowledge,
time or occurrence of new facts, and make it necessary to
revise the estimate made at the time.
Changes in estimates can be
distinguished from accounting
changes.
Example: a change in the method
of depreciation is an accounting
change, while a change in life is a
change in an estimate.

5. Correction of Errors
It may be the fact that errors in an exercise in preparing the
financial statements of one or more prior periods that have been
finally approved by the competent body is detected.
It may be arithmetic errors in the application of accounting
principles, interpret economic events, and other omissions.
When the error has a significant effect on the financial
statements of one or more years, the financial statements can
not be considered reliable at the date they were issued.
These errors, IAS 8 are considered
"fundamental errors". Be remedied by
the time they are discovered.

6. SEAT ADJUSTMENTS
At the end of the accounting period, the accounts must present
their actual balance, because these values will be the basis for
preparing financial statements. When account balances are not
real need to increase them, decrease or correct by an
accounting entry called adjusting entry. Adjustment is required
to bring the account balance to its real value accounting entry.
ENTRY ADJUSTING
31-may Expenditure by income $ 10,000
Income paid by advance $ 10,000
31-may
Expenditure by acumulated furniture depreciation
and equipment $ 833
Acumulated furniture depreciation and equipment $ 833
31-may Cast equipment acumulated depreciation expense $ 3,333
Cast equipment acumulated depreciation $ 3,333
31-may Salary expense $ 6,000
Salary to pay $ 6,000

7. II. PURPOSES
1. Adjust accounts to display on their real balances
which give rise to reasonable preparing financial
statements.
2. Confirm the association of the expenses with
revenues of the .
3. Facilitate the recognition of all economic events on
the accounting period.
4. Correct any errors in the ordinary records.

8. provision for bad Change
Dear Mr. Lee
with the audited accounts cheque for 2,500 the bank overdraft
We have pleasure in enclosing five copies of the full accounts for the period ended 30 April 2002.
We are also sending you a list of the adjustments which you need to make to your Nominal Ledger so
that the opening balances at 1 May 2002 agree with the audited accounts.
Please put in the details of a cheque for 2,500 drawn in December 2001 for Customs and Excise into
bank payments. These details are missing so the Nominal Ledger understates the bank overdraft.
Increase bank payments by 185.20 and code it direct to purchases. This will cover various small
differences which have accumulated over the years.
Make new Nominal Ledger code headings for provision for bad debts.
Change the present code headings for plant equipment at cost to 0011.
We feel it is better to separate the cost and depreciation of the fixed assets in the Nominal Ledger to
make it easier to compare with the final accounts. It also makes it easier to find any adjustments which
have been made.
If you have any problems with these changes or would like to discuss them further, please
do not hesitate to contact us.
Yours sincerely
Lydia Triffs
ended 30 April
accumulated
do not hesitate to contact with the final accounts adjustments

9. VOCABULARY
1. Final accounts: The accounts are codes that have been assigned to an
individual concept and distinguishes them from other, such accounts can
no longer move or change in certain situations.
2. Accumulated: Join other elements to add its effect:
3. Change: Implement, establish laws, accounting policies.
4. The bank overdraft: The bank overdrafts allow the company to have
funds to cover any gaps as cash purchase of assets, working capital
finance, etc.
6. Audited Accounts: The term audit the activity consisting in the review
and verification of accounting records, provided that it has the purpose of
issuing a report that may have effects on third parties. The audit of
financial statements is to check and determine if these statements give a
true and fair view of the assets and financial position of the company or
audited entity.