Section 27 in The Companies (Accounting Standards) Rules, 2006
27. If the fundamental accounting assumptions viz. Going Concern, Consistency and Accrual are followed in financial statements, specific disclosure is not required. If a fundamental accounting assumption is not followed, the fact should be disclosed.
[Accounting Standard (AS) 2] [Substituted by Notification No. G.S.R. 364(E), dated 30.3.2016 (w.e.f. 7.12.2006).]Valuation of Inventories(This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the General Instructions contained in part A of the Annexure to the Notification.)ObjectiveA primary issue in accounting for inventories is the determination of the value at which inventories are carried in the financial statements until the related revenues are recognised. This Standard deals with the determination of such value, including the ascertainment of cost of inventories and any write-down thereof to net realisable value.Scope
