Insurance is an arrangement in which a company provides financial protection to an individual or organization in exchange for payment of premiums. It is a way to reduce risk and provide peace of mind to the policyholder. Insurance plays a vital role in modern society, providing financial security and stability in times of need.
Price can be defined as the exchange of goods or services in terms of money. It is a crucial aspect of marketing in society and is essential for conducting transactions. For a manufacturer, price represents the quantity of money (or goods and services in a barter trade) received for the goods or services that they offer. On the other hand, for a customer, price represents the sacrifice that they make and their perception of the value of the product.
In India, International Accounting Standard 1 (IAS 1) has been adopted as Indian Accounting Standard (Ind AS) 1. Ind AS 1 sets out the overall requirements for financial statements, including their structure, content, and presentation. The standard requires financial statements to include a balance sheet, an income statement, a cash flow statement, and notes to the financial statements.
In modern times, Luca Pacioli is often considered to be a father of accounting in the development of accounting. He was an Italian mathematician and Franciscan friar who lived in the 15th century and is known for publishing the first printed book on double-entry bookkeeping in 1494. However, even Pacioli’s work built upon earlier concepts and practices that had been in use for centuries.
Yes, International Financial Reporting Standards (IFRS) are mandatory for companies in many countries that have adopted them, including International Accounting Standard 1 (IAS 1). This standard sets out the overall requirements for financial statements, including the structure, content, and presentation of financial statements.
The main objective of Ind AS 1 is to ensure that financial statements provide relevant, reliable, comparable and understandable information about the financial performance and position of an entity. This information is essential for decision-makers, including investors, creditors, and regulators, to make informed judgments about the entity.
AS 1 – Disclosure of Accounting Policies is a set of accounting standards that prescribe the minimum disclosure requirements for accounting policies adopted by an entity in preparing and presenting its financial statements.