After studying this chapter, you should be able to:
The IASB's Conceptual Framework describes comparability (including consistency) as one of the qualitative characteristics that contribute to the usefulness of accounting information. Unfortunately, companies are finding it difficult to maintain comparability and consistency due to the numerous changes in accounting policies mandated by the IASB.
Presented below is a condensed version of the change in accounting policy note of United Business Media (UBM) (IRL) in a recent annual report.
Changes in accounting policies (in part)
The accounting policies adopted are consistent with those of the previous financial year except as follows:
IAS 1–Presentation of Financial Statements (revised) The Group adopted this revised standard. The revision separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions ...