According to the Conceptual Framework,an entity is not permitted to change its accounting policies.

Question

Quizplus · Accepted Answer

According to the Conceptual Framework, an entity may change its accounting policies if it is required by a new accounting standard or if the new policy is expected to result in better information being provided to users of the financial statements. However, if an entity changes its accounting policies, it must disclose the nature of and reason for the change, and the effect of the change on the financial statements.

According to the Conceptual Framework,an Entity Is Not Permitted to Change