alleryDisclosure of accounting policy for inventory measurement is required by:
ACompanies Act Schedule III
BIncome Tax Rules only
CIndian Penal Code only
DWages Act provisions
Answer & Solution
Correct answer: A. Companies Act Schedule III
1. Schedule III of the Companies Act, 2013 prescribes inventory disclosures by class.
2. AS 2 requires disclosure of the cost formula used.
3. Tax rules deal with valuation for tax purposes, not financial disclosure.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", §2 (iv)_
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