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The ASB has published for public comment FRED21 Accounting Policies, which sets out its proposals on the selection, application and disclosure of accounting policies. The proposed accounting standard would replace the existing standard SSAP2 Disclosure of accounting policies.
In many respects the requirements for accounting policies would remain unchanged. However, the proposed standard would update the discussion of going concern, accruals, consistency and prudence described as 'fundamental accounting concepts' in SSAP2-to be consistent with the ASB's new Statement of Principles for Financial Reporting. The roles of the four concepts have changed since SSAP2 was issued in 1971 and, like the Statement of Principles,...