All of the Following Statements Are True Regarding IASB's Guideline

Multiple Choice

All of the following statements are true regarding IASB's guideline that companies must demonstrate change in accounting policy as preferable or as an improvement, except:

A) Diversity in situations and characteristics of the items encountered in practice require the use of professional judgment.
B) Changes in accounting policy are appropriate only when a company demonstrates that the newly adopted generally accepted accounting policy is more relevant and reliable than the existing one.
C) Changes in accounting policy are appropriate only when a company demonstrates an improved income tax effect alone.
D) None of these; all statements are true.