In 2015 regis healthcare changed its accounting policy for


Question - In 2015 Regis Healthcare changed its accounting policy for Land and Buildings from Fair Value to Historical Cost. In the annual report the Directors advised that: 'the change in accounting policy in the current year is consistent with industry practice and therefore more relevant for the users of these financial statements'. The change in policy resulted in a reduction in the carrying value of land and buildings of $29.229M, although the net reduction in assets was $20.460M owing to the reversal of a related deferred tax liability of $8.769M

Critique the change in accounting policy and the comment of the Directors.

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Accounting Basics: In 2015 regis healthcare changed its accounting policy for
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