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

Bharat Polymers Ltd enters a transaction for which no Ind AS applies. Its finance head wants to use the Conceptual Framework for Financial Reporting under Ind AS in this situation. Which purpose of the Conceptual Framework supports this?

The Conceptual Framework assists preparers in developing consistent accounting policies when no Ind AS applies to a particular transaction or event, or when an Ind AS allows a choice of accounting policy. It does not override standards.

  1. AAssisting preparers to develop consistent accounting policies when no Ind AS applies to a particular transaction or eventCorrect
  2. BReplacing the need for judgement in applying accounting policies
  3. COverriding the requirements of Ind AS where they are considered too rigid
  4. DAssisting only auditors to evaluate whether financial statements comply with law

Explanation

One stated purpose is to assist preparers to develop consistent accounting policies when no Ind AS applies to a transaction, or when an Ind AS allows a choice of policy. It does not override any Ind AS, and it is not limited to auditors.

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