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?

No I meant through those 3 criteria, can u explain how this cant be the answer?

"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?