PDF · Notes
AS 1 Disclosure of Accounting Policies: Handwritten Notes for CA Inter Advanced Accounting
- Shared by
- Divyaaa B.
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 8 Nov 2026
Part of: CA InterAdv Accounting
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These handwritten notes cover AS 1, Disclosure of Accounting Policies, which is one of the first accounting standards in the CA Inter Advanced Accounting syllabus. The first pages set out the fundamental accounting assumptions of going concern, accrual and consistency, followed by the considerations for selecting accounting policies such as prudence, materiality and substance over form. The notes also list the cases where a change in accounting policy is allowed as an exception to consistency. They suit students who want a short, structured revision of the basic concepts before attempting numericals.
What the notes cover
The notes begin with the meaning of disclosure of accounting policies as the opposite of concealment. They then group the content into three parts: fundamental accounting assumptions, consideration for selection of accounting policies, and changes in accounting policies. Each assumption or principle has a one-line definition, such as accrual meaning that transactions are recorded when they happen and not only when cash settles. A simple diagram contrasts the accrual or mercantile system used by business concerns with the cash system used by service concerns.
How to use them for revision
Read the three groups in order and try to recall each principle with its definition before checking the page. The prudence note, which says to account for all expected expenses and losses but not all expected profits and gains, is a common point for theory questions. The materiality and substance over form definitions are short and worth memorising word for word. Pair these pages with the standard text and past paper questions on changes in accounting policies to test understanding.
Who should read them
These notes are meant for CA Inter students preparing Advanced Accounting, particularly for theory revision in the weeks before the exam. They also help students who find the standard text too long and want a condensed view of the basic concepts. Students who are new to accounting standards may find the going concern and accrual sections a good starting point. The full note can be opened free in the Studycaller app.
Key topics in these notes
- Going concern assumption
- Accrual concept
- Accrual vs cash accounting system
- Consistency principle
- Prudence (conservatism)
- Substance over form
- Materiality
- Changes in accounting policies as exceptions to consistency
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Frequently asked questions
What is AS 1 Disclosure of Accounting Policies?
AS 1 requires that significant accounting policies adopted by an enterprise be disclosed in the financial statements. These notes present the basic concepts that the standard builds on.
What are the fundamental accounting assumptions in AS 1?
The notes list three: going concern, accrual and consistency. Going concern means the business is not expected to close in the near future, and accrual means transactions are recorded when they occur.
What is the difference between accrual and cash system in these notes?
The accrual or mercantile system is shown as suited to business concerns, while the cash system is shown as suited to service concerns.
When can an accounting policy be changed under these notes?
The notes list changes in law, requirements by any accounting standard, and cases where a better presentation is achieved as exceptions to the consistency principle.
How can I get the full note?
Open it free in the Studycaller app.