Where a business makes a change in an accounting policy,it must disclose:

Question

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When a company changes its accounting policy, it must disclose the nature of the change and the reasons for it, as well as the financial effects of the change if it has affected the current period's results or may affect the results of future periods. By disclosing this information, users of the financial statements will be able to better understand the company's financial performance and make informed decisions about investing in or lending to the company. Option A is not sufficient as it does not provide information about the potential impact of the change on the company's financial statements. Option B is too broad and could require the disclosure of immaterial changes. Option D is not sufficient as it does not provide information about the potential impact of the change on future periods.

Where a Business Makes a Change in an Accounting Policy,it