CS Executive · Corporate Accounting and Financial Management · Accounting Standards
According to the Preface to the Statements of Accounting Standards, what is the main function of the Accounting Standards Board (ASB) of the ICAI?
The main function of the Accounting Standards Board is to formulate Accounting Standards so that the ICAI can establish them in India. It does not audit companies, set tax rates or register companies; its role is standard-setting for financial reporting.
- ATo formulate Accounting Standards so that they may be established by the ICAI in IndiaCorrect
- BTo audit the financial statements of listed companies in India
- CTo prescribe income-tax rates applicable to companies
- DTo register companies and maintain their statutory records
Explanation
The Preface states that the main function of the ASB is to formulate Accounting Standards so that such standards may be established by the ICAI in India. Auditing, tax rate setting and company registration are not its functions.
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