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

Tapti Engineering Ltd.'s CFO reviews the Ind AS 8 text and the reporting terminology of the company's financial statements. Draft notes say: (A) the term 'Material' in Ind AS 8 has the meaning given in paragraph 7 of Ind AS 1; (B) Ind AS means Standards prescribed under Section 133 of the Companies Act, 2013; (C) accounting estimates are monetary amounts in financial statements subject to measurement uncertainty; (D) the term 'Statement of financial position' replaces 'balance sheet' in Ind AS 8. Which combination is correct per the official text?

Statements A, B and C are correct. Material has the Ind AS 1 paragraph 7 meaning, Ind AS are Standards prescribed under Section 133 of the Companies Act, 2013, and accounting estimates are monetary amounts subject to measurement uncertainty. Statement D is wrong because Ind AS 8 uses the term balance sheet.

  1. AA, B and C onlyCorrect
  2. BA and D only
  3. CB, C and D only
  4. DA, B, C and D

Explanation

The text gives 'Material' the meaning in paragraph 7 of Ind AS 1, defines Ind AS as Standards prescribed under Section 133 of the Companies Act, 2013, and defines accounting estimates as monetary amounts subject to measurement uncertainty. Statement D is wrong because Ind AS 8 uses 'balance sheet' instead of 'Statement of financial position'. So A, B and C are correct.

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