Karthik (student) (147 Points)
22 May 2010
I have a doubt..
AS 1 says any departure from fundamental accounting assumptions should be disclosed..
It doesnt say these are mandatory..
I have a doubt whether an enterprise (not being a company) can follow any other method of accounting other than accrual system??
Is the financial statements acceptable if a disclosure regarding the departure has been made in the financial statements???
KUSHAL AGRAWAL
(CA Final Student)
(128 Points)
Replied 23 May 2010
Listen dude ,
u r really confused .. as per AS-1 :- Disclosure is needed for all the departures from accounting standards , change in accounting policy and non following of basic accounting principles and assumptions
accounting method to be followed is mentioned by the statue for which accounts are to be prepared.
if someone is preparing accounts under Income Tax law , then as per SEC. 145 it is mandatory either to follow CASH or MErcantile system
similarly if u preparing for COmanies ACt, refer sec 211
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