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

Ishaan, a CA Final student, lists how the Conceptual Framework contributes to the mission of ICAI on accountability. Which statement reflects the Conceptual Framework?

Ind ASs based on the Conceptual Framework strengthen accountability by reducing the information gap between providers of capital and the people to whom they have entrusted money, supplying information needed to hold management to account. They do not guarantee returns or replace regulators.

  1. AInd ASs strengthen accountability by reducing the information gap between providers of capital and the people to whom they have entrusted their moneyCorrect
  2. BInd ASs strengthen accountability by guaranteeing management earns a minimum return for investors
  3. CInd ASs strengthen accountability by replacing the need for regulators to review financial information
  4. DInd ASs strengthen accountability mainly by lowering the entity's income tax liability

Explanation

The text says Ind ASs based on the Conceptual Framework strengthen accountability by reducing the information gap between capital providers and those entrusted with their money, giving information needed to hold management to account. The other options state effects it does not claim.

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