AS 1 Disclosure of Accounting Policies PDF Download


Introduction to Accounting Standards:- Indian of Accounting standards IAS is issued by the Accounting Standard Board ASB. Institute of Chartered Accountants of India ICAI is deals with AS 1 Disclosure of Accounting Policies.  Accounting Standards AS 1 Disclosure of Accounting Policies is introduced in 1979. Accounting standard AS 1 is applicable to corporate and Non corporate Entities. The Accounting Standards AS 1 deals with disclosure of Significant Accounting Policies for the preparation and Presentation of Financial Statements. AS 1 is varies from enterprises to enterprises. AS 1 Disclosure of Accounting Policies is necessary for both internal and external Sources. Sometimes AS 1 disclosure of Accounting Policies is are required by law or on Demand of Government Representative Person Called as Assessing Officer AO. Disclosure of accounting policies varies from the corporate to non corporate.

AS 1 Disclosure of Accounting Policies for Internal Users:

  • Boarder of Directors for ascertainment of the Financial Position.
  • Shareholders to estimate the Profit and Loss accounts of the Company and Ascertain the Balance sheet.

AS 1 Disclosure of Accounting Policies for External Users:

  • Creditors for anal sizing the company standards to provide the loans and assistant for the financial services.
  • Debentures to provide the credit to the company.
  • Owners to take decisions in the company management and improvement in business strategies.
  • If the company is listed in the stock exchange SEBI (securities Exchange Board of India) take over the Income Statement and position Statement.
  • SEBI is act as protection to the share holders and company investors.

Fundamental Accounting Assumptions As per AS 1 Accounting Standards:-

The Fundamental Accounting Assumptions are broadly classified into three types

  • Going Concern.
  • Accrual.
  • Consistency.

Going Concern Concept:-  The Enterprises or business is based on the going concern or continuing concept in the operation of the business. every business of the Corporate and Non corporate world is started business to continuing in the long period of time. No company has intention to disclose or liquidation of the company.

Accrual Concept:- Anticipate all the losses but cannot anticipate any profits still the results are arrives. Company ascertains the contingent losses but cannot ascertain the contingent profits. Misuse of the Accrual Concept leads to the Over Valuation Assets and liabilities vice versa.

Consistency Concept:– Consistency Concept is assumed that accounting policies are consistent from one period to another period. Enterprises are started to maintain the business at the consistent period.  Following the Consistency Concept Internal and External Users can compare one period to another period.

Consideration in Selection of the Accounting Policies:

The Disclosure accounting policies is considered with some exceptions which are clearly mentioned in our website.

Prudence :- Future profits are not anticipated in the enterprises but every losses are consider for the business. Uncertain future profits are cannot be treated as income but uncertain future losses are treated as loss. Uncertain losses are recorded on foot note of the Balance Sheet.

Substance Over Form:– The Accounting Treatments and presentation of the Financial Statements are must be transactions and events should be regulated by the legal forms.

Materiality:- Ignorance of the non recolonization items are treated as materiality. For Example Purchase of waste of bucket is cannot be treated as Asset.

AS 1 Disclosure of Accounting Polices in Necessary Segments:

  • Application of the Method of Depreciation, Depletion and Amortization.
  • Valuation of fixed assets under which basics clear mentioned in the foot note of the balance sheet.
  • Valuation of inventories methods such as FIFO, LIFO, Weighted Average Price Method, Simple Average Price Method ..etc.
  • Treatment of the good will depending upon the method of valuation.
  • Valuation of Investment.
  • Disclosure of all the accounting policies where financial positions are s required.
Disclosure of Changes in Accounting Polices:
  • Changes in the Accounting policies by state or Law.
  • Changes in the Disclosure of accounting policies proving of the most appropriate provisions.
  • Disclosure of Accounting Policies changes as per the provisions.
What is Accounting Standard AS 1?

Accounting Standard AS 1 Disclosure of Accounting Policies of the financial Statements.

How Many Accounting Standards are in India ?

Presently 39 accounting standards are enforcing for the corporate and non corporate field according to the operating of business.

Download AS 1 Disclosure of Accounting Standard PDF 



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