Accounting treatment required to record a change in accounting policy.

An entity shall change an accounting policy only if change:

is required by standard or an interpretation; or if it

result into financial statements providing reliable and relevant information about the effects of transactions, other events or conditions on the entity’s financial position, financial performance or cash flows.

An entity shall account for change in accounting policy resulting from initial application of standard or an interpretation, in accordance with the specific transitional provision, if any, in that standard or interpretation. Where this does not apply , the entity shall apply the change retrospectively. This means that the accounts must be altered so that they contain the numbers which would have been there had the new policy always been in the force. However this will not apply if it is impracticable to determine either the period-specific effects or the cumulative effect of change. The initial application of a policy to revalue asst is not dealt with in this manner.