Article 16 - Change in Basis of Accounting

(1) This Article applies when in a change period—
(a) the basis of accounting adopted by a QFC Entity under Article 15 is changed and the change gives rise, in accordance with GAAP, to a prior period adjustment to closing reserves; or
(b) there is a change of accounting policy in drawing up a QFC Entity's accounts from one period of account to the next and the change gives rise, in accordance with GAAP, to a prior period adjustment to closing reserves.
(2) For the purposes of this Article "change period" means the Accounting Period in which the change in accounting basis or change of accounting policy is first adopted.
(3) Where Article 16(1) applies the prior period adjustment shall be treated as though it took place on the first day of the change period and shall be included in the Accounting Profit for that period.
(4) In this Article "closing reserves" means the reserves at the end of the Accounting Period immediately prior to the change period.
Amended (as from 18th June 2014)