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

Kaveri Infra Ltd has a financial year beginning 1 April 2021. The CFO asks from which accounting period preparers must apply the Conceptual Framework for Financial Reporting under Ind AS, as described in the Appendix. Which is correct?

Preparers apply the Conceptual Framework under Ind AS for accounting periods beginning on or after 1 April 2021. The 1 April 2020 date relates to standard-setting activity, and 1 January 2020 is the IASB's date for its own preparers.

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

Explanation

The Appendix states the Ind AS framework applies to standard-setting from 1 April 2020 and to preparers for accounting periods beginning on or after 1 April 2021. The January 2020 date is the IASB effective date for preparers, and the April 2020 date applies to standard-setting only, so those options are wrong.

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