Question

Which of the following is not required to be disclosed in an entity’s accounting policy note?...

Which of the following is not required to be disclosed in an entity’s accounting policy note?


A. A description of the entity’s key accounting policies.


B. That the financial statements have been prepared on the going concern basis.


C. That the financial statements are general purpose financial statements.


D. The measurement bases used in the preparation of the financial statements.

Homework Answers

Answer #1

Correct option is: B. That the financial statements have been prepared on the going concern basis

As per Accounting Standards, As - 1 Disclosure of Accounting policies there are few fundamental policies which need not to be disclosed unless and untill the entity is not following the same. Going concen is a fundamental policy that is it is assumable that the entity operates with a purpose to continue in future and no intentions to close down, Perhaps if an entity had intutions or intention to close down in near future it must be disclosed

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