Question

What is the significance of disclosing accounting policies in financial statements for an insurance company?

a.

Accounting policies are not required to be disclosed

b.

Disclosing accounting policies is optional

c.

All significant accounting policies must be disclosed as per ICAI standards

d.

Accounting policies are disclosed only if they have changed in the current year

Answer: (c).All significant accounting policies must be disclosed as per ICAI standards Explanation:All significant accounting policies in terms of the accounting standards issued by the ICAI must be disclosed, and any other accounting policy followed by the insurer should be stated in the manner required under Accounting Standard AS 1 issued by the ICAI.

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Q. What is the significance of disclosing accounting policies in financial statements for an insurance company?

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