Accounting Standard-1 Disclosures Of Accounting Policies (Key Points)

1).Significant Accounting Policies followed in preparation of accounts be disclosed at one place along with the

financial statements.

2).Any change and financial impact of such change should be disclosed.

3).If fundamental assumptions (going concern, consistency and accrual) are not followed, the fact to be

disclosed.

4). Going concern assumption is assessed for a foreseeable period of one year.

5).Accounting Policies adopted by the enterprise should represent true and fair view of the state of affairs of the

financial statements.

6).Major considerations governing selection and application of accounting policies are: i) Prudence, ii)

Substance over form and iii) Materiality.

Note — In relation to derivative contracts (e.g. foreign exchange forward contracts) the Institute interpreted

on the principles of prudence that the loss (net), if any on each reporting date shall be provided through the

statement of profit and loss account.

Hey Guys, I will post summary of all other accounting standards soon.So please stay connected.