CS Executive · Corporate Accounting and Financial Management · Accounting Standards
As per the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS), which of the following is one of the stated purposes of the Conceptual Framework?
One stated purpose of the Conceptual Framework is to assist ICAI in formulating Ind ASs that rest on consistent concepts. It also helps preparers develop consistent accounting policies and helps all parties understand Ind ASs. It does not set depreciation rates or filing deadlines.
- ATo assist ICAI in formulating Ind ASs that are based on consistent conceptsCorrect
- BTo override the specific requirements of an Ind AS where the Framework differs
- CTo prescribe the rates of depreciation for all classes of assets
- DTo fix the dates by which companies must file their financial statements
Explanation
The Conceptual Framework's purposes include assisting ICAI in formulating Ind ASs based on consistent concepts, assisting preparers in developing consistent accounting policies where no Ind AS applies or a choice exists, and assisting all parties to understand and interpret Ind ASs. It does not prescribe depreciation rates or filing dates, and it does not override a specific standard.
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