Question

A change in accounting policy e.g. change in method of depreciation is justified -

• A. To comply with accounting standard
• B. To ensure more appropriate presentation of the financial statement of the enterprise
• C. To comply with law
• D. All of the above

Answer 1

The correct option is D All of the above

Accounting policies are accounting principles and must be applied consistently.

However due to the given reasons changes must be made in the accounting policies to promote a better comparability, enhance reliability and understanding of the financial statements of the entity.