Changing accounting presentation

Once you’ve chosen an accounting presentation (the way you show your financial results on statements and in notes), you must retain their consistency. It’s not how you please that you can change them, but there are specific conditions they can be changed. 

Matter of fact is that those conditions rarely do come upon. As such it’s obvious that once you’re in the position of choosing the way you want to present things, you must make those choices carefully. There are rarely any good reasons to change them often.

IFRS states that accounting presentations can be changed if the new presentation method would provide more reliable and relevant information, that is, the new presentation must be an improvement on the previous presentation. When we’re talking about improvement in accounting presentation I’d say that those are the newer approaches obviously, but also those that give more information to the users of the report.

So as you can see, changing accounting presentation is possible, but it’s to be considered with care. With care as in first off make sure you’ve initially chosen the appropriate one obviously, but if the situation arises that you feel some other approach is better, do consider if it’s really an improvement and if it’s providing more information to users.