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AS – 1DISCLOSURE OF ACOUNTING
POLICY
Objective: - This
accounting standard is to facilitate better understanding of
financial statements and meaningful comparison between financial
statements of different enterprises.
Scope:
The transactions
for which different accounting policies can be adopted by
different companies. These are some examples only:
Definitions:
ACOUNTING POLICIES: Means
Specific accounting
principles & methods of applying those principles adopted by the
enterprises in preparation of financial statements.
Presentation and disclosure
requirements:
ü
All
significant accounting policies
adopted should be disclosed.
The disclosure should
form part of the
financial
statements.
ü
Any change in the accounting policies which has a
material effect in the
current period should be disclosed along with amount of
effect.
ü
If
the
fundamental accounting assumptions
are not followed,
the fact should be disclosed.
Fundamental accounting assumptions:
The
accounting assumptions are as follows:
1.
Going
concern
2.
Consistency
3.
Accrual |
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