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

Kaveri Textiles Ltd, a listed company, has a financial year beginning 1 April 2021 and uses the Conceptual Framework under Ind AS to develop an accounting policy for an unusual transaction. The finance manager asks from when the Framework applies to preparers. According to the text, which is correct?

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

  1. AFor preparers, for accounting periods beginning on or after 1 April 2021Correct
  2. BFor preparers, for accounting periods beginning on or after 1 January 2020
  3. CFor preparers, for accounting periods beginning on or after 1 April 2020
  4. DFor preparers, only from the date each company individually adopts it, with no fixed date

Explanation

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 1 January 2020 date is the IASB's effective date for preparers, and 1 April 2020 is the standard-setting date, so those options are wrong.

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