PPSAS 03 - Changes in P & E and Errors Oct- 18 2013

Philippine Public Sector Accounting Standard 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING E""O"S

ESTIATES AN!

 Table  Table o# Content$

PAG Number BACKGROUND INTRODUCTION TO THE IPSAS 3 PHILIPPINE APPLICATION GUIDANCE TO IPSAS 3 Scope

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E&ecti'e !ate

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 PPSAS 3-  Accounting Policies, Policies, Changes in Accounting Estimates and Errors Errors  January 2014 Page 2

Philippine Public Sector Accounting Standard 3 Accounting Policie$, Change$ in Accounting E$ti)ate$ and Error$

*ac+ground  Thi$ Philippine Public Sector Accounting Standard PPSAS- 3 con$i$t$ o#  International Public Sector Accounting Standard IPSAS- 3, .Accounting Policie$, Change$ in Accounting E$ti)ate$ and Error$,/ and the Philippine Application Guidance PAG- prepared to $uit the Philippine public $ector $ituation0  The IPSAS 3 1a$ i$$ued in a2 ( and re'i$ed in !ece)ber (4 b2 the International Public Sector Accounting Standard$ *oard IPSAS*- o# the International 5ederation o# Accountant$ I5AC-0 Thi$ include$ a)end)ent$ re$ulting #ro) IPSAS$ i$$ued up to 6anuar2 %7, (%(0  The PAG in italics- pro'ide$ $upple)entar2 guidance on the proper i)ple)entation o# IPSAS 30 Introduction to the IPSAS 3 IPSAS 3 pre$cribe$ the criteria #or $electing and changing accounting policie$, together 1ith the accounting treat)ent and di$clo$ure o#  change$ in accounting policie$, change$ in accounting e$ti)ate$, and the correction$ o# error$0  Thi$ Standard i$ intended to enhance the rele'ance and reliabilit2 o# an entit28$ 9nancial $tate)ent$ and the co)parabilit2 o# tho$e 9nancial $tate)ent$ o'er ti)e and 1ith the 9nancial $tate)ent$ o# other entitie$0 Philippine Application Guidance to IPSAS 3 Scope PAG1.Paragraph 7 deal$ 1ith the applicabilit2 o# thi$ Standard to all public $ector entitie$ other than Go'ern)ent *u$ine$$ Enterpri$e$ G*E$-0 G*E i$ an entit2 that ha$ all the #ollo1ing characteri$tic$: a- I$ an entit2 1ith the po1er to contract in it$ o1n na)e; b- Ha$ been a$$igned the 9nancial and operational authorit2 to carr2 on a bu$ine$$; c- Sell$ good$ and $er'ice$, in the nor)al cour$e o# it$ bu$ine$$, to other entitie$ at a pro9t or #ull co$t reco'er2; d- I$ not reliant on continuing go'ern)ent #unding to be a going concern other than purcha$e$ o# output$ at ar)8$ length-; and e- I$ controlled b2 a public $ector entit20

 PPSAS 3-  Accounting Policies, Changes in Accounting Estimates and Errors  January 2014 Page 3

This standard shall be applied to all National Government Agencies (NGAs), Local Government Units (LGUs) and Government-!ned and"or #ontrolled #orporations (G##s) not considered as G$%s.

Efective Dte PAG&.This PP'A' shall appl or ann*al +nancial statements covering  periods beginning an*ar 1, &1.

 PPSAS 3-  Accounting Policies, Changes in Accounting Estimates and Errors  January 2014 Page 4