Skip to content

CMA Final · Corporate Financial Reporting · Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)

Which statement about how Ind AS 8 differs from IAS 8, according to the comparison appendix to Ind AS 8, is correct?

Ind AS 8 omits the effective date and transition paragraphs 54-54E of IAS 8 because they are not relevant in the Indian context, yet it keeps those paragraph numbers to stay consistent with IAS 8. It does not delete paragraph 12 or the accounting policy definition.

  1. AInd AS 8 deletes paragraph 12 so management cannot consider IASB pronouncements
  2. BParagraphs 54-54E of IAS 8 on effective date and transition are not included in Ind AS 8, but their paragraph numbers are retainedCorrect
  3. CParagraph 6 of Ind AS 8 contains a definition not found in IAS 8
  4. DInd AS 8 removes the definition of accounting policies

Explanation

The comparison appendix states that IAS 8 paragraphs 54-54E on effective date and transition are not included in Ind AS 8 as not relevant in the Indian context, but the numbers are retained for consistency. Paragraph 6 is shown as deleted in IAS 8 and its number is retained. Paragraph 12 permits management to first consider the latest IASB pronouncements, so it is not deleted.

Did you get it right without looking?

One question tells you little. A timed set on Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8) shows your real accuracy, how long you take and where you lose marks.

Practise Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8)Free diagnostic mock

More Accounting Policies, Changes in Accounting Estimates and Errors (Ind AS 8) questions