A newly appointed accountant, Mr Max of Bulla Ltd told to his team members that financial statements will be more comparable when our entity will use AASB/IFRS standards to prepare a set of financial statements consistent with other reporting entities.

Required:

1. Do you agree with this statement or otherwise? Explain the above statement with four examples (Hint: AASB 116 requires that PPE must be valued at historical cost or fair value).

If Bulla Ltd changes its accounting policies in the current year explain whether such changes need to be disclosed in the financial statement. If so, how?