How to apply a “change in accounting policy?
According to the Commission on Audit (COA), a change in accounting policy requires retrospective application.
What does it mean by retrospective application?
A change in accounting policy requires retrospective application. The entity shall adjust the opening balance of each affected component of net assets/equity for the earliest period presented, and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied. It means that the entity shall restate the amounts for prior period/s in the comparative financial statements to reflect the change in accounting policy.
Item 4.6, COA Circular No. 2022-004 dated May 31, 2022
[Malaysia Airlines | Klook Travel]
You May Like to Read
Our Latest Posts
- Quick Guide: Practice of profession after office hours
Are government officials and employees allowed to practice profession while employed in the government? - Full Guide: Salary Differential of Government Employees
Everything government employees need to know about salary differential — what it is, who qualifies, how it’s computed, whether it’s taxable, and the documents involved. - Full Guide: 3rd Tranche Salary Increase of Government Employees for 2026 (EO 64, s. 2024)
Find out who gets the 3rd tranche salary increase in 2026, how much each Salary Grade receives, when it’s released, and how LGU implementation differs from national government. - Full Guide: Medical Allowance of Government Employees
Find out everything about the ₱7,000 Medical Allowance for government employees in FY 2026 — who qualifies, how it’s computed, when it’s released, and its legal basis under EO No. 64 and DBM Budget Circular No. 2024-6. - Full Guide: Personnel Economic Relief Allowance (PERA) of Government Employees
Government employees in FY 2026 continue to receive the ₱2,000 monthly Personnel Economic Relief Allowance (PERA). Learn who is entitled, how it is computed, when it is released, and its legal basis under the FY 2026 GAA.
