Accounting standards

13. (a) The Accountant of Mobile Limited has sought your opinion with relevant reasons, whether the following transactions will be treated as change in Accounting Policy or not for the year ended 31st March, 2021. Please advise him in the following situations in accordance with the provisions of relevant Accounting Standard; (i) Provision for doubtful debts was created @ 2% till 31st March, 2020. From the Financial year 2020-2021, the rate of provision has been changed to 3%. (ii) During the year ended 31st March, 2021, the management has introduced a formal gratuity scheme in place of ad-hoc ex-gratia payments to employees on retirement (ii) Till the previous year the furniture was depreciated on straight line basis over a period of 5 years. From current year, the useful life of furniture has been changed to 3 years (iv) Management decided to pay pension to those employees who have retired after completing 5 years of service in the organization. Such employees will get pension of 20,000 per month. Earlier there was no such scheme of pension in the organization. (v) During the year ended 31st March, 2021, there was change in cost formula in measuring the cost of inventories