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

Which of the following is stated in the Preface as the reason why ICAI is expected to actively promote the IASB's pronouncements in India?

ICAI is a full-fledged member of the International Federation of Accountants, so it is expected to actively promote IASB pronouncements in India. The aim is to facilitate global harmonisation of accounting standards, not to make IASB a controlling authority or replace Indian standards.

  1. AICAI is a full-fledged member of IFAC and should facilitate global harmonisation of accounting standardsCorrect
  2. BICAI is a subsidiary body of the IASB
  3. CIASB standards have the force of law in India automatically
  4. DICAI wants to remove the need for any Indian standards

Explanation

Paragraph 2.3 states that ICAI, being a full-fledged member of IFAC, is expected to promote IASB pronouncements with a view to facilitate global harmonisation. The other options claim a legal or subordinate status that the text does not give.

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