Why are fundamental assumptions usually not specifically stated?
AThey are kept confidential
BThey are purely optional
CThey apply only to listed firms
DTheir acceptance is assumed
Answer & Solution
Correct answer: D. Their acceptance is assumed
Since their acceptance and use is taken for granted, only a departure from them calls for disclosure.
Keep practising AS 1 Disclosure of Accounting Policies
Browse all AS 1 Disclosure of Accounting Policies questions for CA Inter, or explore more Accounting topics.
Related questions
Under prudence, must a profit be received in cash to be recognised?Matching costs with revenues under the accrual assumption is treated how in AS 1?How do bold italic and plain type paragraphs in an AS compare in authority?Besides accounting standards, what may require some accounting policies to be disclosed?Which consideration lets a firm skip separate reporting of items that would not influence A firm keeps all risks and rewards of goods it transferred and books a loan. Which consideA firm provides for a probable claim at its best estimate. Which consideration is this?A firm uses the written down value method every year without switching. Which assumption i