CS Executive · Corporate Accounting and Financial Management · Accounting Standards
Under the Conceptual Framework for Financial Reporting under Ind AS, which pair correctly lists the elements that relate to a reporting entity's financial performance?
Income and expenses are the elements relating to financial performance under the Ind AS Conceptual Framework. Assets, liabilities and equity relate to the reporting entity's financial position, so any option containing those is incorrect for performance.
- AIncome and expensesCorrect
- BAssets and liabilities
- CLiabilities and equity
- DAssets and equity
Explanation
The Framework states that assets, liabilities and equity relate to financial position, while income and expenses relate to financial performance. Hence the pair relating to performance is income and expenses; the other pairs include position elements.
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