CMA Intermediate · Financial Accounting · Disclosure of Accounting Policies (AS 1)
Which statement about the list of matters in paragraph 14 of AS 1 (examples where disclosure of accounting policies is required) is correct?
The list of examples in paragraph 14 is not intended to be exhaustive. Other significant accounting policies adopted in preparing the financial statements must also be disclosed, even if they are not mentioned in that list.
- AIt is an exhaustive list and no other policy needs disclosure
- BThe list is not intended to be exhaustiveCorrect
- CIt applies only to companies listed on stock exchanges
- DIt applies only to the policies relating to fixed assets
Explanation
AS 1 says the examples in paragraph 14 are illustrative of matters where disclosure is needed, but the list is not intended to be exhaustive. So other significant policies must also be disclosed. The other options add restrictions not found in the standard.
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