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CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

A finance manager at Narmada Steels Ltd. is drafting the notes to the accounts. He wants to say the financial statements present 'fairly' in the IAS style and also refers to 'authorisation for issue' for events after the reporting period. Which pair of terms does Ind AS 1 actually use?

Ind AS 1 uses 'true and fair view' instead of 'fair presentation' and 'approval of the financial statements for issue' instead of 'authorisation'. These replace the IAS 1 wording, so only the pair with both Indian terms is correct.

  1. A'Fair presentation' and 'authorisation of the financial statements for issue'
  2. B'True and fair view' and 'approval of the financial statements for issue'Correct
  3. C'True and fair view' and 'authorisation of the financial statements for issue'
  4. D'Fair presentation' and 'approval of the financial statements for issue'

Explanation

Ind AS 1 uses 'true and fair view' in place of 'fair presentation'. It also uses 'approval of the financial statements for issue' in place of 'authorisation', in the context of events after the reporting period. Only the second option has both terms right.

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