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

According to AS 1, where should the disclosure of significant accounting policies be made?

The disclosure of significant accounting policies should form part of the financial statements. Placing it only in the directors' report, in a separate document, or orally at a meeting does not meet AS 1, which requires the policies to be disclosed within the financial statements themselves.

  1. AOnly in the directors' report, separate from the financial statements
  2. BOrally at the annual general meeting
  3. CAs part of the financial statementsCorrect
  4. DIn a separate document that is not part of the financial statements

Explanation

AS 1 states that disclosure of significant accounting policies should form part of the financial statements (paragraph 19). Options placing it outside the financial statements, such as the directors' report or a separate document, contradict this. Oral disclosure at a meeting is not disclosure in the accounts.

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