🌟 as per as 1 disclosure of accounting policies,tells whatever accounting policies companies are following they can follow but that must be disclosure in financial statement......
if I am following the going concern consistency accrual basis means is I have to mention in my financial statement is disclosure is needed???
could you please explain me about accounting standard 1
18. To ensure proper understanding of financial statements, it is necessary that all significant accounting policies adopted in the preparation and presentation of financial statements should be disclosed.
19. Such disclosure should form part of the financial statements.
20. It would be helpful to the reader of financial statements if they are all disclosed as such in one place instead of being scattered over several statements, schedules and notes.
THIS IS SELF EXPLANATORY THAT ALL POLICIES FOLLOED MUST BE DISCLOSED IN ONE PLACE. USUALLY THE POLICIES ARE RELATED TO
(a) Methods of depreciation, depletion and amortisation
(b) Treatment of expenditure during construction
(c) Conversion or translation of foreign currency items
(d) Valuation of inventories
(e) Treatment of goodwill
(f) Valuation of investments
(g) Treatment of retirement benefits
(h) Recognition of profit on long-term contracts
(i) Valuation of fixed assets
(j) Treatment of contingent liabilities.
15. The above list of examples is not intended to be exhaustive. <- THIS MEANS WHEN EVER A NEW ADJUSTMENTS ARE MADE OR ENCOUNTERED, WE MUST DISCLOSE THOSE POLICE LIKE FOR EXAMPLE RECTIFICAATION OF ERRORS.
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