AIS-2201 Inermediete Accounting-II

Changes in Accounting PrinciplesAccounting standards allow some flexibility in choice of methods that can be applied to a specific class of transactions. However, in order to prevent manipulation, a company changing its accounting policy must have a strong reason for any such change.

IAS 8: Prospective or Retrospective in Changes in Accounting Policies and Estimates?Financial statements are prepared based on Company’s accounting policy and estimation. Every company has a different accounting policies and different estimation as well, depend on the nature of business, size of business, strategy, internal and external environment.

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