Change in accounting policies:
The consistency is also an accounting assumption. Therefore, the accounting policies should consistently be applied and followed from years to years.
Change in accounting policy is permitted only if such change is to bring accounts in line with accounting standards, provisions of law or for better presentation of financial statements.
When change in accounting policies or method is affected, the fact of such change and its impact on accounts must be disclosed.
If change is made in the accounting policies which has no material effect on the financial statements for the current period but which is reasonably expected to have a material effect in later periods, the fact of such change should be appropriately disclosed in the period in which the change is adopted.