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

Which one of the following is NOT listed in the Preface as an objective of the Accounting Standards Board?

Enforcing penalties on non-compliant enterprises is not an ASB objective. The Preface lists reviewing and revising standards, giving interpretations and guidance, and examining how far IFRS can be adapted, among others, but it gives the ASB no enforcement or penalty role.

  1. ATo review Accounting Standards at regular intervals and, if necessary, revise them
  2. BTo provide, from time to time, interpretations and guidance on Accounting Standards
  3. CTo examine how far the relevant International Financial Reporting Standards can be adapted while formulating a Standard
  4. DTo enforce penalties on enterprises that do not comply with Accounting StandardsCorrect

Explanation

The Preface lists suggesting areas for standards, formulating them, adapting relevant IFRS, periodic review and revision, interpretations and guidance, participating with national and international bodies, and other related functions. Imposing penalties for non-compliance is not among them, while the other three options are listed.

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