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Under Ind AS 1, the accounting policies note should DISCLOSE which policies?
AAll accounting policies for every Ind AS, regardless of materiality
BMATERIAL accounting policies only — not non-material ones; with focus on company-specific application, not generic boilerplate text
COnly policies disclosed by the auditor in their report
DOnly those policies that have changed during the year
Answer & Solution
Correct answer: B. MATERIAL accounting policies only — not non-material ones; with focus on company-specific application, not generic boilerplate text
Ind AS 1 (amended) requires disclosure of MATERIAL accounting policies (not all). Materiality of an accounting policy considers the magnitude of balances/transactions affected AND other factors (e.g., the nature of the entity's operations, regulatory environment). Generic policy disclosures applicable to any company add clutter and reduce the value of the FS; specific, judgement-rich disclosures help users understand application.
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