Skip to content

CA Final · Financial Reporting · Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS)

Bharat Ledger Ltd's board member claims that the Conceptual Framework under Ind AS merely serves ICAI's internal needs. Review these statements about its purpose and the contribution it makes: (i) it assists all parties to understand and interpret the Ind ASs; (ii) it strengthens accountability by reducing the information gap between providers of capital and those entrusted with their money; (iii) it contributes to economic efficiency by helping investors identify opportunities and risks across the world; (iv) it permits an entity to ignore an Ind AS requirement where the Framework suggests a different treatment. Which statements are consistent with the Conceptual Framework?

Statements (i), (ii) and (iii) are consistent with the Conceptual Framework: it helps all parties interpret Ind ASs, strengthens accountability and improves economic efficiency. Statement (iv) is wrong because nothing in the Framework overrides any Ind AS or its requirements.

  1. A(i), (ii), (iii) and (iv)
  2. B(i), (ii) and (iii) onlyCorrect
  3. C(ii) and (iii) only
  4. D(i) and (iv) only

Explanation

Statements (i), (ii) and (iii) match the stated purposes and the contributions to transparency, accountability and economic efficiency. Statement (iv) contradicts the position that nothing in the Conceptual Framework overrides any Ind AS or any requirement in an Ind AS. Options including (iv) are therefore wrong, and option (ii)-(iii) omits the purpose of helping all parties understand Ind ASs.

Did you get it right without looking?

One question tells you little. A timed set on Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS) shows your real accuracy, how long you take and where you lose marks.

Practise Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS)Free diagnostic mock

More Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS) questions