ACCTG414 Chapter Notes - Chapter 4: Enbridge, Stantec, Shaw Communications
8 Apr 2014
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Statement of financial position, changes in shareholders" equity and note. Accounting policy changes occur when the company adopts an accounting principle that is different from the one previously used. Such changes are normally recognized through retroactive adjustment, which involves a determination of the change in the income of all prior periods affected via an adjustment to opening retained earnings. Please note that under ifrs, a policy change can only be made if it is required by a change in accounting standards or if it will result in reliable and more relevant information. Under aspe, a change can be made without having to show that it will result in reliable and more relevant information. Occasionally, you will see a change in accounting policy accounted for prospectively, just like a change in estimate. Such treatment is only theoretically justifiable if the change in policy is motivated by a change in circumstances such that retroactive application is inappropriate.
