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is changing indirect method to direct method recognized as change in accounting policies? Outline the disclosures...

is changing indirect method to direct method recognized as change in accounting policies? Outline the disclosures that would be required with a change in an accounting policy.
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Answer #1

Accounting policies are principles and procedures implemented by company to prepare its financial statements. Change in accounting policy should be done only if it is required by IFRS or results in relaible and relevant information about effect of transactions on financial statements.

Changing indirect method to direct method of presenting cash flows from operations should be recognized as change in accounting policies. Direct method provides more reliable informaton about entity's cash flow from operation.

Disclosure requirement

Nature of change in Accounting policy

The title of standard causing the change

Description of the transitional provision

Amount of adjustment relating to prior period not presented

For the current period and each prior period presented, the amount of the adjustment to - Each line item affected & Earnings per share.

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