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

Ganga Foods Ltd's accounts team lists the purposes of the Conceptual Framework for Financial Reporting under Ind AS. Which of the following is NOT one of its stated purposes?

Enabling an entity to depart from an Ind AS requirement is not a stated purpose. The Framework assists ICAI in formulating standards, helps preparers develop consistent policies, and helps all parties understand Ind ASs, but it overrides no Ind AS.

  1. AAssisting ICAI in formulating Ind AS based on consistent concepts
  2. BAssisting preparers to develop consistent accounting policies when an Ind AS allows a choice of accounting policy
  3. CAssisting all parties to understand and interpret the Ind ASs
  4. DEnabling an entity to depart from an Ind AS requirement when the Framework gives a better presentationCorrect

Explanation

The stated purposes are to assist ICAI in formulating Ind ASs on consistent concepts, to assist preparers in developing consistent accounting policies when no Ind AS applies or a choice is allowed, and to assist all parties to understand and interpret Ind ASs. Enabling departures from an Ind AS is not a purpose, since the Framework is not an Ind AS and overrides none.

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