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

Under AS 1, which presentation of accounting policy disclosures would be considered helpful to the reader of financial statements?

It is helpful to disclose all significant accounting policies together in one place. AS 1 says this is preferable to having them scattered over several statements, schedules and notes, because it aids the reader's understanding of the financial statements.

  1. AScattering the policies across several statements, schedules and notes
  2. BDisclosing policies only where an item is first mentioned
  3. CDisclosing all the policies together in one placeCorrect
  4. DDisclosing only those policies that changed during the year

Explanation

AS 1 states that it would be helpful to the reader if all significant policies are disclosed as such in one place instead of being scattered over several statements, schedules and notes. Disclosing only changed policies would omit other significant policies.

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