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CA Final · Financial Reporting · Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

While comparing Ind AS 8 with IAS 8, a reviewer at Desai Auto Ltd notes terminology differences. Which pairing correctly reflects the terminology used in Ind AS 8?

Ind AS 8 uses 'balance sheet' instead of 'Statement of financial position' and 'Statement of profit and loss' instead of 'Statement of comprehensive income'. This is a terminology difference from IAS 8 noted in the comparison appendix. The other options reverse the terms or use names that do not appear.

  1. A'Balance sheet' instead of 'Statement of financial position', and 'Statement of profit and loss' instead of 'Statement of comprehensive income'Correct
  2. B'Statement of financial position' instead of 'Balance sheet', and 'Statement of comprehensive income' instead of 'Statement of profit and loss'
  3. C'Balance sheet' instead of 'Statement of financial position', and 'Income statement' instead of 'Statement of profit and loss'
  4. D'Position statement' instead of 'Balance sheet', and 'Statement of profit and loss' instead of 'Statement of comprehensive income'

Explanation

The comparison with IAS 8 states that Ind AS 8 uses 'balance sheet' in place of 'Statement of financial position' and 'Statement of profit and loss' in place of 'Statement of comprehensive income'. The other options reverse the terms or invent terms not used.

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