Every now and then it happens that accounting policies that are being used do change \u2013 either they are changed by regulatory or you choose to use another approach from opportunities given (i.e. fair value or cost price for investment property etc.).<\/p>\n
There is no major drama here really. Just make sure you disclose the fact of the change separately under the heading \u201cChanges in accounting policies used\u201d or something similar in the beginning of the accounting policies section. Things you need to disclose:<\/p>\n
And that\u2019s it really. Simply put, just make sure you say clearly what changed and why it changed<\/strong>. Just to give the users an idea of how it affected the statements, it\u2019s useful to also give an idea of the numbers. Something that\u2019s recommended is that if the change is prospective; if possible, also add the numerical affect (i.e. in case cost value was chosen instead of fair value for investment property, there\u2019s going to be depreciation charge in x amount annually on the statements starting from the change).<\/p>\n