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It's (A) >>>>>>>> True
If a company does not follow fundamental accounting assumption, it should disclose it in notes to the financial statement.
The Financial Statements are prepared with the following three Fundamental Accounting Assumptions.Unless otherwise specified the readers of the Financial Statements assume that the Financial Statements are prepared in line with these assumptions.They are Going Concern, Consistency & Accrual.Accounting Standard1 describes them as follows
Going Concern:The enterprise is normally viewed as a going concern, that is, as continuing in operation for the foreseeable future.It is assumed that the enterprise has neither the intention nor the necessity of liquidation or of curtailing materially the scale of the operations.
Consistency: It is assumed that accounting policies are consistent from one period to another.
Accrual:
Revenues and costs are accrued, that is, recognized as they are earned or incurred (and not as money is received or paid) and recorded in the financial statements of the periods to which they relate. (The considerations affecting the process of matching costs with revenues under the accrual assumption are not dealt with in this Statement.)
If a fundamental accounting assumption is not followed, the fact should be disclosed.
yes, fact to be disclosed
