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

Kaveri Infra Ltd, an Ind AS reporter with a financial year beginning 1 April, is checking when the Conceptual Framework for Financial Reporting under Ind AS first applies to its own use as a preparer, for example when developing a policy on a transaction not covered by any Ind AS. Which is the first accounting period for which it applies to preparers?

The Conceptual Framework under Ind AS applies to preparers for accounting periods beginning on or after 1 April 2021. The earlier date of 1 April 2020 applies only to standard-setting activity, and 1 January 2020 is the IASB's date for its preparers, not the Indian date.

  1. AAccounting periods beginning on or after 1 April 2020
  2. BAccounting periods beginning on or after 1 January 2020
  3. CAccounting periods beginning on or after 1 April 2021Correct
  4. DAccounting periods beginning on or after 1 April 2022

Explanation

Appendix 1 states that the Ind AS Conceptual Framework applies to standard-setting activity from 1 April 2020, and to preparers for accounting periods beginning on or after 1 April 2021. The 1 April 2020 option confuses the standard-setting date with the preparer date. The 1 January 2020 date is the IASB's effective date for preparers, not the Indian one.

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