AS - 01 - Disclosure of Accounting Policies

Disclosure of Accounting Policies: require clear reporting of all significant accounting policies to ensure transparent financial statements.

Disclosure of Accounting Policies requires disclosure of all significant accounting policies within the financial statements, preferably presented together, covering areas such as depreciation methods, inventory valuation, foreign currency translation, valuation of investments and assets, treatment of goodwill, retirement benefits, long term contracts and contingent liabilities. Policy selection must aim to present a true and fair view and be governed by prudence, substance over form and materiality. Fundamental assumptions-Going Concern, Consistency and Accrual-need not be stated if followed, but departures and material changes in policies must be disclosed with their effects where ascertainable.