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

Rohini Steels Ltd's accountant makes four statements about Ind AS 8 and its relationship with IAS 8. (i) Paragraph 6 appears as 'deleted' in IAS 8, and its number is retained in Ind AS 8 for consistency of numbering. (ii) Paragraphs 54-54E of IAS 8 on effective date and transition are not included in Ind AS 8 as they are not relevant in the Indian context, but the paragraph numbers are retained. (iii) Paragraph 9 of Ind AS 8 has been modified to delete text on guidance forming a non-integral part of the Standard, as such guidance is not included. (iv) Ind AS 8 deletes the term 'Material' and has no reference to Ind AS 1. Which statements are correct?

Statements (i), (ii) and (iii) are correct as per the comparison with IAS 8: the deleted paragraph 6 number is retained, paragraphs 54-54E are omitted but numbers retained, and paragraph 9 is modified. Statement (iv) is wrong because Material takes its meaning from paragraph 7 of Ind AS 1.

  1. A(i), (ii) and (iii) onlyCorrect
  2. B(i) and (iv) only
  3. C(ii), (iii) and (iv) only
  4. DAll four statements

Explanation

The comparison appendix supports (i), (ii) and (iii). Statement (iv) is wrong because Ind AS 8 states that 'Material' has the same meaning as in paragraph 7 of Ind AS 1, so it does not delete the term.

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