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CMA Intermediate · Financial Accounting · Disclosure of Accounting Policies (AS 1)

According to AS 1, where should the disclosure of all significant accounting policies adopted in preparing and presenting the financial statements appear?

AS 1 requires that the disclosure of significant accounting policies forms part of the financial statements themselves. Placing it only in the Directors' Report, in audit working papers or in a separate document would not meet the standard's requirement.

  1. AAs part of the financial statementsCorrect
  2. BOnly in the Directors' Report
  3. COnly in the auditor's working papers
  4. DIn a separate document issued to the registrar on request

Explanation

AS 1 states that disclosure of significant accounting policies should form part of the financial statements. The Directors' Report and auditor's papers are not part of the financial statements, so they do not satisfy the requirement.

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