Accounting Standard-1 discusses the disclosure of accounting policies in financial statements. It states that the purpose is to facilitate understanding and meaningful comparison between financial statements. It identifies key areas that accounting policies apply to, such as goodwill, inventories, investments, fixed assets and depreciation. The primary consideration for selecting policies is that they represent a true and fair view, while principles of prudence, substance and materiality are secondary. Fundamental assumptions of going concern, consistency and accrual are also covered. All significant policies and any changes must be disclosed as part of the financial statements.