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CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

Which statement about presentation of a true and fair view under Ind AS 1 is correct?

Applying Ind AS, with additional disclosure when necessary, is presumed to result in financial statements presenting a true and fair view. The view requires faithful representation of transactions and events under the Conceptual Framework's definitions and recognition criteria, not fair value for everything.

  1. AIt is achieved only by following the Companies Act format, regardless of Ind AS
  2. BApplication of Ind AS, with additional disclosure when necessary, is presumed to result in a true and fair viewCorrect
  3. CIt requires measurement at fair value for all assets and liabilities
  4. DIt is presumed to result from Ind AS only when the auditor so certifies

Explanation

Paragraph 15 states that application of Ind ASs, with additional disclosure when necessary, is presumed to result in financial statements that present a true and fair view. It rests on faithful representation under the Conceptual Framework definitions and recognition criteria, not on universal fair value or auditor certification.

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