CA Inter P1 · Chapter 2 · Question 1 of 12
AS 1 identifies three major considerations that govern the selection and application of accounting policies. Which of the following is NOT one of them?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Consistency
Explanation
AS 1 lists prudence, substance over form and materiality as the major considerations governing the selection and application of accounting policies. Consistency is one of the fundamental accounting assumptions, not one of these considerations.
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