Change in accounting policy

1) Please refer to Accounting Standard 1. To change the policy it is necessary to prove the circumstances & reasons to change in accounting policy and the consistency in accounting policy should be followed.

2) Even if change in accounting policy changed it is compulsory to mention in audit report as well as in Notes on accounts that the reasons for substantiating the change in accounting policy.

3) Cash method of accounting is not permitted to every one as per Income tax also, but as I understood there is no restriction under Companies Act.