What should be disclosed about changes in accounting policies?

• A. The date of adoption only
• B. The policy affected only
• C. The nature of the change, the date of adoption, and the effect on financial statements
• D. No disclosure required

Answer: (C)

When a company changes how it accounts for something, you must disclose three things so readers understand the impact: what policy changed (the nature of the change), when the change was adopted (the date of adoption), and how it affected the financial statements (the effect on amounts reported, including any restatement of prior periods if applicable). This full disclosure ensures users can see not just that a change occurred, but exactly how it shifts reported results and balances. Providing only the date or only the policy would omit important context, and saying no disclosure is required is incorrect.