S K SAHU (Chartered Accountant) (24 Points)
10 August 2010Hi,
Can we change Accouting policy mid of the Financial Year?
We want to change policy from average cost to standard cost.
What other legal compliance except disclosure?
Thanks in Advance
Sahu
Raghav Toshniwal
(student)
(450 Points)
Replied 11 August 2010
Yes, you can change accounting policy in the mid of year, but you have to comply with below facts---
Accounting policies must be applied consistently from one period to the next in order to achieve comparability and consistency. However due to following two reasons it can be changed.
When a change in policy is required by an IFRS, it is also stated in that IFRS in transitional provisions how to settle the matters relevant to change in accounting policy. So these transitional provisions work as user guide.
But a A voluntary change in accounting policy must be applied retrospectively according to IAS 8 (Accounting Policies, Changes in Accounting Estimated and Errors) unless it is impracticable to do so.
Regards
RAGHAV
CAclubindia
