Skip to content

CMA Final · Corporate Financial Reporting · Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)

Under Ind AS 8, accounting policies are best described as:

Accounting policies are the specific principles, bases, conventions, rules and practices an entity applies in preparing and presenting its financial statements. This differs from accounting estimates, which are monetary amounts subject to measurement uncertainty, and from Ind AS, which are the standards prescribed under the Companies Act.

  1. AMonetary amounts in financial statements that are subject to measurement uncertainty
  2. BThe specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statementsCorrect
  3. CStandards prescribed under Section 133 of the Companies Act, 2013
  4. DOmissions or misstatements that could influence decisions of primary users

Explanation

Ind AS 8 defines accounting policies as the specific principles, bases, conventions, rules and practices applied in preparing and presenting financial statements. The first option defines accounting estimates, the third defines Ind AS themselves, and the fourth describes materiality.

Did you get it right without looking?

One question tells you little. A timed set on Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8) shows your real accuracy, how long you take and where you lose marks.

Practise Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)Free diagnostic mock

More Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8) questions