Question 6 Which one of the following is correct regarding changes in accounting policies? The application of an accounting policy for transactions, other events, or conditions that differ in substance from those previously occurring is a change in accounting policies. The application of a new accounting policy for transactions, other events or conditions that were immaterial in prior periods is a cahnge in accounting policies. An entity can change its accounting policy whenever it wants as long as the changes in accounting policy are applied retrospectively. An entity changes its accounting policy only if the change is required by an IFRS or results in the financial statements providing reliable and more relevant information.