Skip to content

CMA Intermediate · Financial Accounting · Accounting Fundamentals

Under the ICAI framework for accounting standards in India, which of the following is the correct statement about Ind AS and the Accounting Standards (AS) notified under the Companies (Accounting Standards) Rules, 2021?

Ind AS are Indian Accounting Standards converged with IFRS and apply to companies that meet prescribed listing and net worth criteria. Other companies continue to follow the older Accounting Standards, so both sets coexist and applicability is not universal.

  1. AInd AS are Indian Accounting Standards converged with IFRS, and applicability depends on prescribed net worth and listing criteria, while other companies follow ASCorrect
  2. BInd AS apply to all companies irrespective of size or listing, and AS have been withdrawn completely
  3. CAS are converged with IFRS and Ind AS are based on old Indian GAAP
  4. DInd AS apply only to sole proprietorships and partnership firms, and AS apply only to companies

Explanation

Ind AS are Indian standards converged with IFRS. They apply to companies meeting prescribed criteria (such as listing and net worth thresholds), while other companies continue to follow AS. The claim that Ind AS apply to all companies is wrong because applicability is phased by criteria, and AS have not been withdrawn.

Did you get it right without looking?

One question tells you little. A timed set on Accounting Fundamentals shows your real accuracy, how long you take and where you lose marks.

Practise Accounting FundamentalsFree diagnostic mock

More Accounting Fundamentals questions