Question

The first account standard (AS-I) issued by the Institute of Chartered Accountants of India is _________________.

• A. Valuation of Inventories
• B. Revenue Recognition
• C. Change in Financial Position
• D. Disclosure of Accounting Policies

Answer 1

The correct option is D Disclosure of Accounting Policies

To ensure proper understanding of financial statements, it is necessary that all significant accounting policies adopted in the preparation and presentation of financial statements must be disclosed.
Such disclosure should form part of the financial statements.
It would be helpful to the reader of financial statements if they are all disclosed in one place instead of being scattered over several statements, schedules and notes.