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

As per the scope paragraph of Ind AS 1, to which financial statements does an entity apply the Standard?

Ind AS 1 applies to general purpose financial statements that an entity prepares and presents in accordance with Indian Accounting Standards. It is not meant for internal management reports, tax computations or cost records, which serve specific users rather than the general body of users.

  1. AInterim management reports prepared only for internal use
  2. BGeneral purpose financial statements prepared and presented in accordance with Indian Accounting StandardsCorrect
  3. CTax computations filed with the income tax department
  4. DCost records maintained for product costing

Explanation

The scope paragraph of Ind AS 1 states that an entity shall apply the Standard in preparing and presenting general purpose financial statements in accordance with Ind AS. Internal reports, tax computations and cost records are not general purpose financial statements, so they fall outside this scope.

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