[Illustrative Checklist] Disclosure requirements under AS 1 | Disclosure of Accounting Policies

AS 1 deal with the disclosure of significant accounting policies followed in preparing and presenting financial statements. The purpose of this Standard is to promote a better understanding of financial statements by establishing through an accounting standard the disclosure of significant accounting policies and the manner in which accounting policies are disclosed in the financial statements. Such disclosure would also facilitate a more meaningful comparison between the financial statements of different enterprises.

As per the requirement of this AS, an entity is required to follow the below-mentioned disclosure requirements:

I. Check whether the entity has disclosed all significant accounting policies adopted in the preparation and presentation of financial statements.

II. Check whether the entity has disclosed the significant accounting policies as such should form part of the financial statements and the significant accounting policies should normally be disclosed in one place.

III. Check whether the entity has disclosed any change in the accounting policies which has a material effect in the current period or which is reasonably expected to have a material effect in later periods. Also, where a change in accounting policies has a material effect in the current period, whether the entity has disclosed the amount by which any item in the financial statements is affected by such change to the extent ascertainable. Further, where such an amount is not ascertainable wholly or in part, the fact should be indicated.

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