Accounting standards of ICAI are issued to ensure that accounts are prepared uniformly and in line with the Indian GAAPs for better understanding of the users.
Tag: AS 1
AS 1 issued by the ICAI is mandatory in nature and deals with the disclosure of significant accounting policies followed in preparing and presenting the financial statements.
As per AS-1 of the ICAI on disclosure of accounting policies, the following are examples of the areas in which different accounting policies may be adopted by different enterprises.
Certain fundamental accounting assumptions underlie the preparation and presentation of financial statements. They are usually not disclosed specifically because their acceptance and use are assumed.
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.