36 AS 1 (issued 1979)
Accounting Standard (AS) 1
Disclosure of Accounting Policies
(This Accounting Standard includes paragraphs 24-27 set in bold italic
type and paragraphs 1-23 set in plain type, which have equal authority.
Paragraphs in bold italic type indicate the main principles. This
Accounting Standard should be read in the context of the Preface to the
Statements of Accounting Standards1.)
The following is the text of the Accounting Standard (AS) 1 issued by
the Accounting Standards Board, the Institute of Chartered Accountants of
India on ‘Disclosure of Accounting Policies’. The Standard deals with the
disclosure of significant accounting policies followed in preparing
and presenting financial statements.
In the initial years, this accounting standard will be recommendatory in
character. During this period, this standard is recommended for use by
companies listed on a recognised stock exchange and other large commercial,
industrial and business enterprises in the public and private sectors.2
1. This statement deals with the disclosure of significant accounting policies
followed in preparing and presenting financial statements.
2. The view presented in the financial statements of an enterprise of its
state of affairs and of the profit or loss can be significantly affected by the
accounting policies followed in the preparation and presentation of the financial
statements. The accounting policies followed vary from enterprise to
enterprise. Disclosure of significant accounting policies followed is necessary
if the view presented is to be properly appreciated.
1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which
Accounting Standards are intended to apply only to items which are material.
2 It may be noted that this Accounting Standard is now mandatory. Reference may
be made to the section titled ‘Announcements of the Council regarding status of
various documents issued by the Institute of Chartered Accountants of India’
appearing at the beginning o