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CS Executive · Corporate Accounting and Financial Management · Introduction to Corporate Accounting

Which statement about the meaning of accounting policies in Ind AS 1 is correct as per the definitions paragraph?

In Ind AS 1, accounting policies carry the meaning given in paragraph 5 of Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Ind AS 1 does not create its own narrower definition limited to depreciation or revenue, nor does it link the term to any approval by the Registrar.

  1. AThe term has the same meaning as defined in paragraph 5 of Ind AS 8Correct
  2. BThe term is separately defined in Ind AS 1 to mean only depreciation methods
  3. CThe term refers only to policies on revenue recognition
  4. DThe term is defined in Ind AS 1 as policies approved by the Registrar

Explanation

The definitions paragraph of Ind AS 1 says accounting policies are defined in paragraph 5 of Ind AS 8 and the term is used in Ind AS 1 with the same meaning. It does not restrict the term to depreciation or revenue, nor link it to the Registrar.

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