What disclosure are required in the notes in regard to accounting policy judgements?

Expert Solution

Any change in an accounting policy which has a significant effect should be disclosed. The amount by which any item in the financial statements is affected by such change should also be disclosed to the extent it can be calculated. Where such amount is not ascertainable, wholly or in part, the fact should be disclosed. If a change is made in the accounting policies which has no material effect on the financial statements for the current period but is expected to have a material effect in later periods, the fact of such change should be appropriately disclosed in the period in which the change is adopted.

Following points should be remember for disclosure.

Any change in the accounting policies which has a material effect in the current period or is expected to have a material effect in later periods should be disclosed.

In case of a change in accounting policies which has a material effect in the current period, the amount by which any item in the financial statements is affected should also be disclosed to the extent it can be calculated. Where such amount is not ascertainable, wholly or in part, the fact should be indicated.
If the fundamental accounting assumptions of Going Concern, Consistency and Accrual are followed in financial statements, specific disclosure is not required. If a fundamental accounting assumption is not followed, the fact should be disclosed.

ekkarill92 answered 1 year ago

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