CMA Intermediate · Corporate Accounting and Auditing · Conceptual Framework
A new Conceptual Framework revision is issued by ICAI, and it differs from the recognition requirement in an existing Ind AS. Which is correct as per the Conceptual Framework's status provisions?
The existing Ind AS continues to apply. The Conceptual Framework is not an Ind AS and overrides no Ind AS requirement, and revisions to it do not automatically change Ind ASs; ICAI must go through its due process to amend the standard.
- AThe Ind AS is automatically amended to match the revised framework
- BThe framework overrides the Ind AS because it is the foundation of reporting
- CThe Ind AS continues to apply until ICAI completes its due process to amend it; the framework does not override any Ind ASCorrect
- DPreparers may choose whichever of the two they prefer
Explanation
The text says the framework is not an Ind AS and overrides no Ind AS requirement, and that revisions do not automatically change Ind ASs; amendment needs ICAI's due process. Options A, B and D contradict this.
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