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

Kaveri Pharma Ltd prepares financial statements for the year beginning April 1, 2021 under Ind AS and has no Ind AS covering a new type of customer loyalty arrangement. It wants to apply the Conceptual Framework for Financial Reporting under Ind AS to develop its policy. From which accounting periods is the Framework applicable to preparers, according to the Ind AS Framework's Appendix 1?

For preparers, the Conceptual Framework under Ind AS applies to accounting periods beginning on or after April 1, 2021. April 1, 2020 is the date from which it applies to ICAI's standard-setting, and January 1, 2020 is the IASB's preparer date.

  1. APeriods beginning on or after January 1, 2020
  2. BPeriods beginning on or after April 1, 2020
  3. CPeriods beginning on or after April 1, 2021Correct
  4. DPeriods beginning on or after April 1, 2022

Explanation

The Appendix states the Framework under Ind AS is applicable for standard-setting from April 1, 2020 and for preparers for accounting periods beginning on or after April 1, 2021. January 1, 2020 is the IASB date for preparers under IFRS, so it is wrong here. April 1, 2020 is the standard-setting date, not the preparer date.

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