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TMI BlogComparison of ICDS-I, AS 1 & IndAS-1X X X X Extracts X X X X X X X X Extracts X X X X ..... Consideration in selection of accounting policies To represent a true and fair view of the state of affairs and income of the business, profession or vocation, the treatment and presentation of transactions and events shall be governed by their substance and not merely by the legal form. The major considerations governing the selection and application of accounting policies are:- a. Prudence b. substance over Form c. Materiality When an Ind AS specifically applies to a transaction, other event or condition, the accounting policy or policies applied to that item shall be determined by applying the Ind AS. True Fair Accounting policies adopted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncern basis of accounting is appropriate without detailed analysis. In other cases, management may need to consider a wide range of factors relating to current and expected profitability, debt repayment schedules and potential sources of replacement financing before it can satisfy itself that the going concern basis is appropriate. Disclosure if Going Concern assumption is not appropriate If fundamental accounting assumptions is not followed, The fact shall be disclosed. If fundamental accounting assumptions is not followed, The fact shall be disclosed. When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges in accounting policies Changes in accounting policy will not be done unless for a reasonable cause . However, Reasonable cause is not defined. The guidance for the same will need to be taken from judicial precedents. If a change is made in the accounting policies which has no material effect for the current year but which is reasonably expected to have a material effect in later years, the fact of such change should be appropriately disclosed in the year in which the change is adopted and also in the year in which such change has material effect for the first time. Changes in accounting policies should be made only if it is required by statute, for compliance with an Accounting Standard or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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