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CMA Intermediate · Financial Accounting · Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)

According to the ICAI Framework, the application of the principal qualitative characteristics and of appropriate accounting standards normally results in financial statements that:

Applying the principal qualitative characteristics together with appropriate accounting standards normally produces financial statements that convey what is generally understood as a true and fair view of financial position, performance and cash flows. It does not guarantee error-free or identical statements.

  1. Aguarantee freedom from all errors
  2. Bconvey what is generally understood as a true and fair viewCorrect
  3. Cshow the market value of all assets
  4. Dare identical across all enterprises

Explanation

The Framework says that applying the principal qualitative characteristics and appropriate accounting standards normally results in statements conveying what is generally understood as a true and fair view. It does not promise error-free or identical statements, and it does not require market values.

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