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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 under Ind AS for the year beginning 1 April 2021. The finance team asks from which date preparers must apply the Conceptual Framework for Financial Reporting under Ind AS, and from which date it applied to ICAI's standard-setting activity. Which pair of dates is correct per the framework's Appendix?

The Conceptual Framework under Ind AS applies to ICAI's standard-setting activity with effect from 1 April 2020, and to preparers of financial statements for accounting periods beginning on or after 1 April 2021. The 1 January 2020 date relates to the IASB's own framework.

  1. AStandard-setting from 1 April 2020; preparers for accounting periods beginning on or after 1 April 2021Correct
  2. BStandard-setting from 1 April 2021; preparers for accounting periods beginning on or after 1 April 2020
  3. CStandard-setting from 1 January 2020; preparers for accounting periods beginning on or after 1 January 2020
  4. DStandard-setting and preparers both from 1 April 2021

Explanation

The Appendix says the Ind AS Conceptual Framework applies to standard-setting activity with effect 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's preparer effective date, so option C is wrong.

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