Constitutes Changes in Accounting Policies:

1. Change in Accounting Treatment
   A change in the accounting method or recognition criteria applied to a transaction or event constitutes a change in accounting policy.
2. Required by Statutory or Regulatory Provisions
   A change in policy can occur when new regulations or accounting standards mandate an update in how financial transactions are recognized and reported.
3. Improving Relevance and Reliability
   Changes in accounting policies may also be made voluntarily to provide more relevant or reliable information about the entity’s financial position, performance, or cash flows.
4. Consistency Across Reporting Periods
   Consistency in the application of accounting policies is expected, and any deviation should be clearly justified by the need for enhanced financial representation.

Disclosure Requirements:

i. When Initial Application of IPSAS 3 is Made:

1. The title of the accounting standard applied.
2. The nature of the change in accounting policy.
3. For the current period and each prior period presented, the amount of the adjustment for each financial statement line item affected, where applicable.

ii. When Voluntary Changes in Accounting Policy are Made:

1. The reasons for the voluntary change and why the new policy provides more relevant and reliable information.
2. The effect of the change on the financial statements of the current period, as well as any prior or future periods affected.
3. A description of the financial impact on all prior periods, including adjustments to individual financial statement line items where applicable.