On 01 July 2016, Aiden Limited decided to change its accounting policy in order to expense finance costs as a period cost instead of capitalising them as was previously done. The effect of this change on the annual financial statements has been summarised as follows: Finance costs Old policy: New policy: 2014 RO R60 000 2015 RO R68 000 2016 R 2016 The following are draft financial statements for the year ended 31 December 2016 before adjusting for the change in accounting policy. 1 600 000 690 000 910 000 1 000 000 1910 000 RO R36 000 2015 R Net profit before tax Taxation Net profit after tax Retained earnings at the beginning of the year Retained earnings at the end of the year Assume a tax rate of 30% throughout all affected years. Required: Disclose the change in accounting policy in the financial statements for the year ended 31 December 2016, in accordance with International Financial Reporting Standards. 1 400 000 640 000 760 000 240 000 1 000 000