An entity is not permitted to change its accounting policies.

Question

Quizplus · Accepted Answer

An entity may change its accounting policies in certain situations, such as when there is a change in accounting standards or when the entity determines that a change will result in more reliable and relevant financial information. However, any changes must be disclosed in the financial statements along with the reasons for the change and the effects on financial performance.

An Entity Is Not Permitted to Change Its Accounting Policies