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

The ICAI is finalising a new Ind AS and decides that, to meet the objective of general purpose financial reporting, one requirement will depart from an aspect of the Conceptual Framework. Under the Conceptual Framework for Ind AS, what must the ICAI do in this situation?

When the ICAI specifies a requirement that departs from an aspect of the Conceptual Framework in order to meet the objective of general purpose financial reporting, it will explain that departure in the Appendix to the relevant Ind AS. It need not amend the Framework first.

  1. AObtain prior approval of every reporting entity before issuing the standard
  2. BExplain the departure in the Appendix to the relevant Ind ASCorrect
  3. CAmend the Conceptual Framework before the standard can be issued
  4. DAvoid disclosing the departure because the Framework is not an Ind AS

Explanation

The Framework permits ICAI to specify requirements departing from aspects of the Framework to meet the objective of general purpose financial reporting. If it does so, it will explain the departure in the Appendix to the relevant Ind AS. No prior amendment or entity approval is required.

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