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CA Final · Financial Reporting · Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Himalaya Foods Ltd has an unusual transaction for which no Ind AS specifically applies. Management wants to consider the most recent pronouncements of the International Accounting Standards Board as one source while developing a policy. What does the Indian version of Ind AS 8 say on this, as noted in its comparison with IAS 8?

Paragraph 12 of Ind AS 8 mentions that where no Ind AS applies, management may first consider the most recent pronouncements of the International Accounting Standards Board. It is a permitted reference point, not a prohibition, a mandatory replacement of Ind AS, or subject to government approval.

  1. AIt prohibits any reference to IASB pronouncements
  2. BIt requires IASB pronouncements to be applied mandatorily in place of Ind AS
  3. CIt mentions that in the absence of an Ind AS, management may first consider the most recent pronouncements of the IASBCorrect
  4. DIt allows reference to IASB pronouncements only after taking approval from the Central Government

Explanation

The comparison with IAS 8 notes that paragraph 12 of Ind AS 8 mentions that in the absence of an Ind AS, management may first consider the most recent pronouncements of the IASB. It is permissive, not prohibitive or mandatory. No Government approval is mentioned.

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