Distinguish between fundamental accounting assumption and accounting policies. [RTP Jan. 2025]

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Answer Solution: Fundamental Accounting Assumption  There are three fundamental accounting assumptions viz Going concern, consistency and accrual.  No disclosures is required if all the Disclosure is required if all the fundamental assumptions has been followed.  If fundamental accounting assumption is not followed, it is to be disclosed in the financial statements together with the reason  There is no option to choose fundamental accounting assumptions. Accounting Policies  There is no single list of accounting policies, which are applied in all circumstances. As Consistency and Accrual. a result, there may be different accounting policies adopted by different enterprises.  Disclosure is required if a particular accounting policy has been followed  If the policy is changed in subsequent year, the effect of such change should be disclosed in the financial statements  The firm has an option to select a particular policy

Distinguish between fundamental accounting assumption and accounting policies. [RTP Jan. 2025]

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