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MPR Sanjay Kumar

3145 Points Posted on 05 November 2021

accounting standard 1 describes about the disclosure of accounting policies could you please tell me how we have to disclose,
going concern
consistency
accrual basis
if these three are not followed by the company means shall I disclosure.

what is mean by material effect any material affect could you please explain me

finally how to disclose the accounting policies what basis I have to analyse and find out discussion

Replies (3)

Quick Summary

This discussion explores the disclosure requirements for accounting policies under accounting standard 1, focusing on crucial elements like going concern, consistency, and the accrual basis of accounting. It clarifies when disclosure is necessary, explains the concept of material effect with examples, and touches upon depreciation calculations and residual values.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 05 November 2021

The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.