Areas where different Accounting Policies may be adopted

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:

(a) Methods of depreciation, depletion and amortisation;

(b) Treatment of expenditure during construction;

(c) Conversion or translation of foreign currency items;

(d) Valuation of inventories;

(e) Treatment of goodwill;

(f) Valuation of investments;

(g) Treatment of retirement benefits;

(h) Recognition of profit on long-term contracts;

(i) Valuation of fixed assets;

(j) Treatment of contingent liabilities.

The above list of examples is inclusive and is not intended to be exhaustive.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.