AS 1 - 36 AS 1 (issued 1979) Accounting Standard (AS) 1...

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Accounting Standard (AS) 1 (issued 1979) Disclosure of Accounting Policies (This Accounting Standard includes paragraphs 24-27 set in bold italic type and paragraphs 1-23 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 1 .) The following is the text of the Accounting Standard (AS) 1 issued by the Accounting Standards Board, the Institute of Chartered Accountants of India on ‘Disclosur e of Accounting Policies’ . The Standard deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements. In the initial years, this accounting standard will be recommendatory in character. During this period, this standard is recommended for use by companieslistedonarecognisedstockexchangeandotherlargecommercial, industrial and business enterprises in the public and private sectors. 2 Introduction 1. This statement deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements. 2. The view presented in the financial statements of an enterprise of its state of affairs and of the profit or loss can be significantly affected by the accounting policies followed in the preparation and presentation of the financial statements. The accounting policies followed vary from enterprise to enterprise. Disclosure of significant accounting policies followed is necessary if the view presented is to be properly appreciated. 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 It may be noted that this Accounting Standard is now mandatory. Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard.
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Disclosure of Accounting Policies 41 3. The disclosure of some of the accounting policies followed in the preparation and presentation of the financial statements is required by law in some cases. 4. The Institute of Chartered Accountants of Indiahas,in Statementsissued by it, recommended the disclosure of certain accounting policies, e.g., translation policies in respect of foreign currency items.
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AS 1 - 36 AS 1 (issued 1979) Accounting Standard (AS) 1...

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