... consistent with the Statement of Principles and other recent pronouncements, including FRS 12 (provisions) and FRS 5 (substance of transactions). FRED 21 Accounting Policies has been issued for this purpose. The ASB regards SSAP 2 as broadly satisfactory in other respects, and proposes retaining that standard's disclosure requirements in respect of accounting policies. However, the opportunity has been taken to clarify some of the other aspects of SSAP 2 and, as a result, the FRED: * Sets out the objectives and constraints to be considered by directors when selecting and changing accounting policies * Sets out clearly a requirement, implied but not explicit in SSAP 2, that an entity should adopt those accounting policies that are, in the opinion of its directors, most appropriate to its particular circumstances for the purpose of giving a true and fair view. * sets out the circumstances in which an entity should also disclose details of the ...

See this essay or coursework document in full right now