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CS Executive · Corporate Accounting and Financial Management · Introduction to Corporate Accounting

According to Ind AS 1, what is presumed to result in financial statements that present a true and fair view?

Ind AS 1 presumes that applying Ind ASs, with additional disclosure when necessary, results in financial statements that present a true and fair view. The presumption arises from compliance with the standards, not from board approval, a cost basis or limited disclosure.

  1. AApplication of Ind ASs, with additional disclosure when necessaryCorrect
  2. BApproval of the financial statements by the Board of Directors alone
  3. CPreparation of statements strictly at historical cost, without any notes
  4. DDisclosure of only those items that are material to the promoters

Explanation

Ind AS 1 states that the application of Ind ASs, with additional disclosure when necessary, is presumed to result in financial statements that present a true and fair view. Board approval or avoiding notes does not create this presumption.

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