IAS 8

“So by presentation it becomes an accounting policy ?” – yes

“is this the way to approach such questions?” – yes

“Switching to purchasing plant using finance leases from a previous policy of purchasing plant for cash?
can u explain for this?” – what needs to be explained? Previously the company bought new plant by paying immediately. Now the company buys new plant under finance lease! What is there to explain?

“Switching to purchasing plant using finance leases from a previous policy of purchasing plant for cash?
can u explain for this?”

Wouldn’t it have been really helpful to me if you had written in your original post something like

“If I apply these three criteria to a situation where a company switches to purchasing plant using finance leases where previously they had a policy of purchasing plant for cash, would that be a change in accounting policy?”

That would have been so much clearer as to what you were expecting from me!

Now, let’s get into this nonsense ……. if a company that manufactures needles decides to expand their range and manufacture surf-boards, is that a change of accounting policy?

If a company changes from a policy of paying suppliers within 2 months to a policy of paying within 6 weeks, is that a change of accounting policy?

If a company changes from a policy of buying raw materials from Asia to a policy of buying from South America, is that a change of accounting policy?

If a company changes from a policy of buying new plant in cash to a policy of buying new plant under finance lease, is that a change of accounting policy?

OK?