Disclosures of Accounting Policy - Ind AS - Indian Accounting Standards - Companies Law

Disclosures of Accounting Policy An entity shall disclose in summary material accounting policy information. The measurement basis used in preparing the financial statements like historical cost, NRV, replacement cost, fair value, etc; and The other accounting policies used that are relevant to an understanding of the financial statements Disclosure of particular accounting policies is especially useful to users when those policies are selected from alternatives allowed in Ind Ass. Some Ind Ass specifically require disclosure of particular accounting policies, including choices made by management between different policies they allow. Each entity discloses operations and the policies that the users of its financial statements would expect to be disclosed for that type of entity. An accounting policy may be significant because of the nature of the entity s operations even if amounts for current and prior periods are not material. An entity shall disclose, in the summary of significant accounting policies or other notes, the judgements, that management has made in the process of applying the entity s accounting policies. Accounting policy information is material if, when considered together with other information included in an entity s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. An entity shall disclose, along with material accounting policy information or other notes, the judgements, apart from those involving estimations, that management has made in the process of applying the entity s accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Sources of estimation uncertainty An entity shall disclose information about the assumptions it makes about the future, and other major sources of estimation uncertainty at the end of the reporting period, that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year. In respect of those assets and liabilities, the notes shall include details of: their nature, and their carrying amount as at the end of the reporting period. Capital An entity shall disclose information that enables users of its financial statements to evaluate the entity s objectives, policies, and processes for managing capital. When disclosure of capital requirements and how capital is managed would not provide useful information or distorts a financial statement user s understanding of an entity s capital resources, the entity shall disclose separate information for each capital requirement to which the entity is subject. Puttable financial instruments classified as equity For puttable financial instruments classified as equity instruments, an entity shall disclose (to the extent not disclosed elsewhere): summary quantitative data about the amount classified as equity; its objectives, policies and processes for managing its obligation to repurchase or redeem the instruments when required to do so by the instrument holders, including any changes from the previous period; the expected cash outflow on redemption or repurchase of that class of financial instruments; and information about how the expected cash outflow on redemption or repurchase was determined. Other disclosures An entity shall disclose in the notes: the amount of dividends proposed or declared before the financial statements were approved for issue but not recognised as a distribution to owners during the period, and the related amount per share; and the amount of any cumulative preference dividends not recognised. An entity shall disclose the following, if not disclosed elsewhere in information published with the financial statements: the domicile and legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office); a description of the nature of the entity s operations and its principal activities; the name of the parent and the ultimate parent of the group; and if it is a limited life entity, information regarding the length of its life.