Change Voluntary Disclosure

1. Title PSAK;
2. That changes in accounting policy made in accordance with the transition provisions, when
applicable;
3. The nature of changes in accounting policies;
4. Explanation of the transitional provisions, when applicable;
5. Transitional provisions which have an impact on future periods, when applicable;
6. For the current period and any prior periods presented, all practical, the amount of the
adjustment:
i.
For each item the financial statements affected; and
ii.
Basic and diluted LPS, if PSAK 56 is applied over the entity;
a)The amount of the adjustment relating to prior periods presented, all practical;
and
b)
If retrospective application is impractical for a certain period and
then, or prior periods presented, the circumstances leading to the existence of
that condition and a description of how and started when changes in
accounting policies applied.
*

) The financial statements of subsequent periods need not repeat.

The New PSAK Has Not Been Effective

When an entity has not applied a new PSAK that has been issued but not yet effective, the
entity shall disclose:
1. That fact.
2. Relevant information that can be reasonably estimated or can be known to assess the
possible impact of the application of the new PSAK on the financial statements in the
period of initial application.

Accounting Estimation
Accounting estimate is an estimate of the entity which may affect elements of the financial
statement.
1. Estimates should involve consideration of the entity based on the latest information
available and reliable.
2. Many things affect financial statement element that cannot be measured accurately, but
can only be estimated because of the uncertainty inherent in business activity.
3. The use of reasonable estimates is paramount in the preparation of financial statement
without neglecting reliability.

Changes in Accounting Estimation

Estimates involve judgment based on current information available and reliable.
Changes in accounting estimates are:
1. Adjustment of the carrying amount of the asset or liability, or the amount of the
periodic consumption of assets, which is derived from the assessment of the present
status of, and expected future benefits and obligations associated with, assets and
liabilities.
2. Changes in accounting estimates result from new information or new developments
and,
3. Therefore, not error correction.
An entity should recognize the effects of changes in estimate prospectively as follows:

1. Throughout the changes in accounting estimates result in changes in asset and a

liability, or relating to an item of equity, changes in accounting estimates are
recognized by adjusting the carrying amount of items of assets, liabilities, or equity
related to the period of change.
2. Impact of changes in accounting estimates, in addition to changes in the application of
the above, it is recognized prospectively in the income statement at:
a. The period of the change, if the change impacts only during that period; or
b. Period of change and future periods, if the change affects both.

Disclosure of Estimation Changes

1. An entity shall disclose the nature and amount changes in accounting estimates:
Impact on the current period, or
are expected to have an impact on future periods, except for the disclosure of the
impact on future periods is not practical to estimate the impact.
2. If the number impact on future periods is not disclosed because the estimate is
impractical, it shall disclose that fact.

Error
1. Errors can arise in the recognition, measurement, presentation or disclosure of
elements of financial statements.
2. Financial statements are not in accordance with PSAK if it contains:
a. Material error
b. Non deliberate material error to achieve a presentation of the statement of
financial position, financial performance or cash flows specified.

Previous Period Errors

Previous Period Errors is included negligence and mistakes in recording, the entity's financial
statements for one or more prior periods arising from a failure to use, or misuse reliable
information that:
1. Available when the completion of the financial statements for that period;
2. And rationally expected to be obtained and used in preparing and presenting financial
statements.
Such errors include ;

Impact mathematical calculation errors,

Misapplication of accounting policies,
Error or misinterpretation of the facts,
Cheating.

Previous Period Error Correction

Correction of material errors last period:

Entities correcting material errors retrospectively in the last period the first complete financial
statements issued after the discovery by:
1. Restate the comparative amounts for prior periods statement in which the error
occurred; or
2. If the error occurred before the earliest period of the statement, then restate the initial
balance of the asset, a liability, and equity for the earliest prior periods statement.

Limitations of Retrospective Presentation

Past period error is corrected by retrospective restatement except to the extent not practical to
determine the impact of a particular period or cumulative impact of the error.
When it is not practical to determine:
1. Specific impact period errors
a. The entity restate the opening balances of assets, a liability, and equity for the
earliest period for which retrospective restatement is practical (perhaps the
current period).
2. Cumulative impacts, at the beginning of the current period, of an error on all prior
periods.
a. Entity represents comparative information to correct the error prospectively
from the earliest date the most practical.
Application of a regulation is not practical when the entity cannot apply it after all the effort
made rational.
To a certain Past period, it is impracticable to apply a change in accounting policy
retrospectively or retrospectively restated to correct an error if:

The impact of retrospective application or retrospective restatement cannot be

determined;
Retrospective application or retrospective restatement requires assumptions about the
intent of the existing management in the previous period; or
Retrospective application or retrospective restatement requires significant estimates of
amounts and it is impossible to distinguish objectively information about the
estimates:
o provides evidence of circumstances that existed on the date on which the
amount was recorded, measured or disclosed; and
o will be available when the financial statements of Past period authorized for
issue from other information.