a. Changes in Accounting Policies
According to IPSAS 3, changes in accounting policy occur in the following cases:
i. A change from one basis of accounting to another basis of accounting.
ii. A change in the accounting treatment, recognition, or measurement of a transaction, event, or condition within a basis of accounting.
b. Disclosure Requirements
(i) When the initial application of IPSAS 3 is made and has effects on current, prior, or future periods:

• The Title of the standard.
• An event or description of transitional provision when applicable.
• The nature of the change in accounting policy.
• Amount of adjustments by line item and, if retrospective application is impracticable, the reason and effective date.

(ii) When voluntary changes in accounting policy are made and have effects on current, prior, or future periods:

• Nature of the change in accounting policy.
• Reasons for applying the new accounting policy for more reliable and relevant information.
• Amount of adjustment for each financial statement line item affected and circumstances when the retrospective application is impracticable.

c. Challenges in Expenditure Assignment
(i) Lack of formal assignment: The absence of formal responsibilities among multi-level governments leads to instability in intergovernmental finances and challenges in budget planning.

(ii) Inefficient assignments: Misalignment of capital expenditure responsibilities, often being placed at the central level without matching the service-providing level, creates inefficiencies.

(iii) Ambiguity in assignments: Unclear expenditure assignments between state and central governments lead to conflicts, particularly in areas such as internal security responsibilities.

(iv) Co-sharing of responsibilities: Sharing of responsibilities between governments can result in confusion, as seen in education where both central and local governments influence key policies.

(v) Conflict of responsibilities: Fragmented responsibilities across government levels can cause confusion and inefficiencies, such as overlapping duties in public service delivery.