Podcast Beta
Questions and Answers
What is the principle that a change in accounting policy should be justified by?
Relevance and faithful representation
What should be shown in the balance sheet to reflect a change in accounting policy?
3 balance sheets: Current year end, Previous year end, BS at the start of the previous year
What should be the same when comparing the annual reports before and after a change in accounting policy?
Cash flow and statement of financial position (SOFP), SOPL
When justifying a change in policy, what should be considered regarding the previous policy?
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What are the 5 elements that need to be kept consistent when defining a change in policy?
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