Accounting Standards 1

AS 1 divine revelation of method of accounting principles 1. This statement deals with the disclosure of significant accounting policies followed in preparing and presenting fiscal statements. 2. To ensure proper understanding of financial statements, it is necessary that exclusively significant accounting policies adopted in the preparation and presentation of financial statements should be disclosed. 3. Such disclosure should form part of the financial statements. 4 It would be helpful to the reader of financial statements if they are all disclosed as such in one amaze instead of being scattered over several statements, schedules and notes. 5. each agitate in an accounting policy which has a strong effect should be disclosed. The amount by which any feature in the financial statements is affected by such change should too be disclosed. If a change is made in the accounting policies which has no material effect on the financial statements for the current period but which is reasonably expected to capture a material effect in later periods, the position of such change should be appropriately disclosed in the period in which the change is adopted. 6. Disclosure of accounting policies or of changes therein cannot remedy a wrong or improper treatment of the item in the accounts. 7.

The purpose of this Statement is to uphold better understanding of financial statements Such disclosure would also facilitate a more meaningful comparison amongst financial statements of different openings. AS 2 Inventories encompass goods purchased and held for resale, for example, merchandise purchased by a retailer and held for resale, computer software held for resale, or shoot down and other property held for resale. Inventories also encompass finished goods produced, or work in progress being produced, by the enterprise and include materials, maintenance supplies, consumables and loose tools awaiting use in the product process. Inventories do not include machinery spares which can be utilise only in... If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper