Question

What disclosures are required by AASB 101/IAS 1 regarding accounting policies?

a. Disclosure of accounting policies is optional
b. No specific disclosure requirements
c. General principles only
d. Disclosures providing an overview of the significant accounting policies

Answer 1

The disclosures required by AASB 101/IAS 1 regarding accounting policies include disclosures providing an overview of the significant accounting policies.

Step-by-step explanation:

The disclosures required by AASB 101/IAS 1 regarding accounting policies include disclosures providing an overview of the significant accounting policies. These disclosures ensure that users of financial statements have a clear understanding of the accounting policies adopted by an entity and how they are applied in practice. They help users to make informed decisions based on the financial information presented.
For example, an entity may disclose its policies for revenue recognition, depreciation, and inventory valuation. It may also provide information about any changes in accounting policies during the reporting period.
These disclosures are important for transparency and allow users to assess the financial statements' reliability and comparability.