Change in Accounting Policy vs New Policy | Accounting Concepts Explained Simply

A new transaction needs a new accounting policy. That is not a change in accounting policy. For a “change” to exist, there must first be an existing policy to change. If a transaction never happened before — or is substantially different from previous ones — adopting a policy for it is simply adoption of a new policy. Building ≠ Patent. Different substance can mean different accounting policies. #AccountingPolicies #CAInter #CAFinal #AccountingConcepts #ConceptClarity #CAStudents #CAAspirants #CAIndia #IndAS #AccountingStandards #FinancialReporting #CommerceStudents #StudySmart #LearnConcepts #AccountsMadeEasy #ProfessionalLearning #SAGC