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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 starting on 1 April 2021. Its accountant is deciding from when preparers must apply the Conceptual Framework for Financial Reporting under Ind AS to develop accounting policies, noting that the IASB framework of March 2018 applied to preparers from 1 January 2020. Which statement is correct?

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 January 2020 date belongs to the IASB framework, not the Ind AS one.

  1. AIt applies to preparers for accounting periods beginning on or after 1 April 2021, and for standard-setting activity from 1 April 2020Correct
  2. BIt applies to preparers for accounting periods beginning on or after 1 April 2020, the same as for standard-setting
  3. CIt applies to preparers from 1 January 2020, the same date as the IASB framework
  4. DIt applies to preparers only for periods beginning on or after 1 April 2022

Explanation

The Ind AS Conceptual Framework applies for standard-setting activity with effect from 1 April 2020 and for preparers for accounting periods beginning on or after 1 April 2021. The 1 January 2020 date relates to the IASB framework, so adopting it for Ind AS preparers is wrong. Kaveri's period beginning 1 April 2021 is therefore covered.

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