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CMA Intermediate · Financial Accounting · Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)

One of the objectives of the Accounting Standards Board listed in the Preface is related to IFRSs. Which of the following correctly states it?

The ASB's objective is to examine how far relevant IFRSs can be adapted while formulating an Indian Accounting Standard and to adapt them accordingly. It is about adaptation to Indian conditions, not compulsory IFRS reporting or issuing IFRSs for the IASB.

  1. ATo examine how far the relevant IFRSs can be adapted while formulating the Accounting Standard and to adapt the sameCorrect
  2. BTo require every Indian enterprise to publish IFRS accounts
  3. CTo issue IFRSs on behalf of the IASB
  4. DTo approve the audit reports prepared under IFRS

Explanation

Objective (iii) in paragraph 2.1 is to examine how far the relevant IFRSs can be adapted while formulating the Accounting Standard and to adapt the same. The Preface also mentions participating in the IASB's consultative process, but not issuing IFRSs or mandating IFRS accounts.

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