Explain the Areas of Policies

Areas of Policies

The following is a list of areas in which different policies may be adopted by different enterprises:

1. Valuation of Inventories.
2. Cash Flow Statement.
3. Contingencies and Events occurring after the Balance Sheet date.
4. Depreciation Accounting.
5. Construction Contracts.
6. Net Profit or Loss for the Period prior period items and changes in Accounting Policies.
7. Revenue Recognition.
8. Accounting for Fixed Assets.
9. The Effects of Changes in Foreign Exchange Rates.
10. Accounting for Govt. Grants.
11. Accounting for Investments.
12. Accounting for Amalgamations.
13. Employees Benefit.
14. Borrowing Costs.
15. Segment Reporting.
16. Related Party Disclosures.
17. Leases.
18. Earning Per Share.
19. Consolidated Financial Statements.
20. Accounting for Taxes on Income.
21. Accounting for Investment in Associates in Consolidated Financial Statements.
22. Discontinuing Operations.
23. Interim Financial Reporting.
24. Intangible Assets.
25. Financial Reporting of Interests in Joint Ventures.
26. Impairment of Assets.
27. Provisions, Contingent Liabilities and Contingent Assets.

• AS 1 requires that :
1. All significant accounting policies adopted by the enterprise should be disclosed.
2. Such disclosure should form part of financial statements and should be at one place.