A change in accounting method is not a change in accounting policy. An assessee is entitled to change the method of accounting, if such change is bona fide and he follows such change regularly thereafter.
Change of accounting method: an assessee may adopt cash basis if the change is bona fide and consistently applied thereafter.
An assessee may change the method of accounting from mercantile to cash basis if the change is bona fide and is followed regularly thereafter; such a change is distinct from a change in accounting policy and must be consistently applied to support proper income computation and disclosure.
Note: It is a system-generated summary and is for quick reference only.