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CMA Intermediate · Corporate Accounting and Auditing · Conceptual Framework

Under the Conceptual Framework for Financial Reporting under Ind AS, what is the position of the Conceptual Framework when its content differs from a specific requirement in an Ind AS?

The Ind AS requirement prevails. The Conceptual Framework is not itself an Ind AS, and nothing in it overrides any Ind AS or any requirement of an Ind AS, so a specific standard always takes precedence over the Framework.

  1. AThe Conceptual Framework prevails over the Ind AS requirement
  2. BThe Ind AS requirement prevails, because the Conceptual Framework is not an Ind AS and overrides nothingCorrect
  3. CThe entity may choose whichever of the two it prefers
  4. DThe matter must be referred to the auditor for a decision

Explanation

The Framework states that it is not an Ind AS and that nothing in it overrides any Ind AS or any requirement in an Ind AS. So when the two differ, the specific Ind AS requirement applies. The option giving the Framework priority reverses this position.

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