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

Which statement about the presentation of accounting policies is consistent with AS 1?

AS 1 says it would be helpful to readers if all accounting policies are disclosed together in one place rather than scattered across statements, schedules and notes. The list of examples is not exhaustive, and all significant policies, not just changed ones, must be disclosed.

  1. AThe list of examples in paragraph 14 is exhaustive, so no other policy needs disclosure
  2. BOnly policies that were changed during the year need to be disclosed
  3. CIt would be helpful to disclose all policies in one place rather than scattered over several statements, schedules and notesCorrect
  4. DPolicies must be scattered next to the relevant item so that they are not disclosed together

Explanation

Paragraph 20 states that it would be helpful to readers if all policies are disclosed in one place instead of being scattered. Paragraph 21 says the paragraph 14 list is not exhaustive, ruling out the first option. Paragraph 18 requires all significant policies to be disclosed, not only changed ones.

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