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CA Final · Financial Reporting · Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Meghna Foods Ltd reviews the meaning of terms in Ind AS 8. Which statement is correct?

Ind AS 8 states that Indian Accounting Standards are Standards prescribed under Section 133 of the Companies Act, 2013, and that the term Material carries the same meaning as assigned in paragraph 7 of Ind AS 1. It is not separately defined within Ind AS 8.

  1. AInd AS are Standards prescribed under Section 133 of the Companies Act, 2013, and 'Material' has the meaning given in paragraph 7 of Ind AS 1Correct
  2. BInd AS are prescribed under Section 129 of the Companies Act, 2013, and Material is defined separately within Ind AS 8
  3. CInd AS are voluntary guidelines issued by ICAI with no statutory prescription
  4. DMaterial in Ind AS 8 has the meaning given in Ind AS 10

Explanation

Ind AS 8 states that Indian Accounting Standards are Standards prescribed under Section 133 of the Companies Act, 2013, and that 'Material' has the same meaning as in paragraph 7 of Ind AS 1. The other options cite a wrong section, wrong standard or deny statutory prescription.

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