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CMA Final · Corporate Financial Reporting · Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)

As defined in Ind AS 8, accounting policies are:

Accounting policies are the specific principles, bases, conventions, rules and practices that an entity applies in preparing and presenting its financial statements. Monetary amounts subject to measurement uncertainty are accounting estimates, not policies, and Ind ASs are the Standards prescribed under Section 133 of the Companies Act, 2013.

  1. AMonetary amounts in financial statements that are subject to measurement uncertainty
  2. BThe specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statementsCorrect
  3. CStandards prescribed under Section 133 of the Companies Act, 2013
  4. DOmissions from, and misstatements in, the financial statements for prior periods

Explanation

Ind AS 8 defines accounting policies as the specific principles, bases, conventions, rules and practices applied in preparing and presenting financial statements. The first option is the definition of accounting estimates. The third describes Indian Accounting Standards themselves. The fourth relates to prior period errors.

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