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CA Final · Financial Reporting · Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS)

While drafting a new Ind AS, ICAI concludes that a particular requirement must differ from an aspect of the Conceptual Framework to meet the objective of general purpose financial reporting. What does the Conceptual Framework say ICAI will do in this case?

ICAI may sometimes specify requirements departing from the Conceptual Framework in order to meet the objective of general purpose financial reporting. When it does, it explains the departure in the Appendix to the relevant Ind AS, and the Ind AS requirement prevails over the framework.

  1. AAmend the Conceptual Framework before issuing the Ind AS
  2. BExplain the departure in the Appendix to the relevant Ind ASCorrect
  3. CPermit preparers to choose between the framework and the Ind AS
  4. DWithdraw the Ind AS until the framework is revised

Explanation

The framework says ICAI may sometimes specify requirements that depart from aspects of the framework to meet the reporting objective, and if so it will explain the departure in the Appendix to the relevant Ind AS. Preparers do not get a choice, since the framework cannot override an Ind AS.

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