Skip to content

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

Himalaya Steels Ltd's company secretary prepares a note on the status of the standards for a board meeting. Compared with IAS 8, which of the following statements about Ind AS 8 is correct, based on the Appendix comparing Ind AS 8 with IAS 8?

The correct statement is that Ind AS 8 uses 'balance sheet' and 'Statement of profit and loss' instead of IAS terms, and 'approval' instead of 'authorisation' of financial statements for issue. Paragraphs 54-54E content is excluded with numbers retained, paragraph 6 is deleted, and paragraph 9 had non-integral guidance text removed.

  1. AParagraphs 54-54E on effective date and transition are retained in full text because they apply in India
  2. BParagraph 6 is retained with full text, as Ind AS 8 has added content there
  3. CThe terms 'balance sheet' and 'Statement of profit and loss' are used in place of 'statement of financial position' and 'statement of comprehensive income', and 'approval' is used instead of 'authorisation' for issue of financial statementsCorrect
  4. DParagraph 9 is expanded to state that the guidance accompanying Ind ASs forms a non-integral part of the Standard

Explanation

The Appendix says Ind AS 8 uses 'balance sheet' and 'Statement of profit and loss', and 'approval of the financial statements for issue' instead of 'authorisation'. Paragraphs 54-54E are not included, only the numbers retained. Paragraph 6 is shown as deleted in IAS 8 and its number is retained. Paragraph 9 was modified to delete the text on non-integral guidance, not expanded.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 8 Accounting Policies, Changes in Accounting Estimates and ErrorsFree diagnostic mock

More Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors questions