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CMA Intermediate · Corporate Accounting and Auditing · Conceptual Framework

Under the Conceptual Framework for Financial Reporting under Ind AS, which statement about its status relative to the Ind ASs is correct?

The Conceptual Framework is not an Ind AS, and nothing in it overrides any Ind AS or any requirement of an Ind AS. So where a specific standard prescribes a measurement basis, that standard applies rather than the framework's general concepts.

  1. AIt is itself an Ind AS and prevails over other Ind ASs where they conflict
  2. BIt is not an Ind AS, and nothing in it overrides any Ind AS or any requirement in an Ind ASCorrect
  3. CIt overrides an Ind AS only when the Ind AS permits a choice of accounting policy
  4. DIt overrides an Ind AS whenever the Ind AS departs from the measurement concepts

Explanation

Paragraph SP1.2 states that the Conceptual Framework is not an Ind AS and that nothing in it overrides any Ind AS or any requirement in an Ind AS. The options claiming it prevails, even in limited cases, contradict this. Measurement concepts in it therefore cannot displace a measurement requirement of a specific Ind AS.

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