Skip to content

CMA Intermediate · Financial Accounting · Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)

Which of the following is NOT a listed purpose of the ICAI Framework for the Preparation and Presentation of Financial Statements?

Prescribing depreciation rates is not a purpose of the Framework. Its stated purposes include helping auditors form opinions, helping the Board promote harmonisation by reducing alternative treatments, and helping users interpret statements, while it is conceptual and not a rule on rates.

  1. AAssisting auditors in forming an opinion on whether financial statements conform with Accounting Standards
  2. BAssisting the Accounting Standards Board in promoting harmonisation by reducing alternative accounting treatments
  3. CAssisting users in interpreting information in financial statements prepared under Accounting Standards
  4. DPrescribing the rates of depreciation to be charged on each class of assetCorrect

Explanation

The Framework's purposes include helping preparers, the Board, auditors and users, and promoting harmonisation by reducing alternative treatments. It does not prescribe depreciation rates, which is beyond its conceptual role. The other three options are listed purposes.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS) shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)Free diagnostic mock

More Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS) questions