Pen) Indian Accounting Standards and IFRS Questions Latest Indian Accounting Standards and IFRS MC@Q Objective Questions CER ABEL kei) LR eon Start Complete Exam Preparation Giese aI (ee Download App Question 1: View this Question Online > IFRS stands for : 1. International Financial Reporting Statements 2. International Financial Reporting Standards 3. Indian Financial Reporting Statements 4. Indian'Finantial Reporting Standards Mm ‘of the above/More than one of the above. Answer (Detailed Solution Below) Option 2: International Financial Reporting Standardscoaching India’s Super Teachers for all govt. exams Under One Roof — Let's discuss the concepts relat and IFRS. Explore more from A: oe and Indian Accounting Standards uuntingland Auditing here. Learn now! Indian Accounting Standards and IFRS Question 1 Detailed Solution Key Points International Financial Reporting Standards (IFRS) + The International Financial Reporting Standards (IFRS) are accounting standards that are issued by the International Accounting Standards Board (IASB) with the objective of providing a common accounting language to increase transparency in the presentation of financial information. + The IASB has the authority to set IFRS and to approve interpretations of those standards. + IFRS is intended to be applied by profit-oriented entities. y: Pee ae Race een ey ts Scam CeCe ee) raya Fancy Pacey oes Ciel reset’ Exotic) as » oid D> Download App a Question 2: Accounting Principles are generally based on 1. objectivity2. Subjectivity’ 3. A. in recording 4, More than one of the above. 5. None of the above Answer (Detailed Solution Bolow) Option 1: bjectivity Indian Accounting Standards and IFRS Question 2 Detailed Solution The correct answer is objectivity. o Key Points + Accounting Principles: GAAP (Generally Accepted Accounting Principles) are a set of general accounting principles and guidelines that serve as the foundation for formal accounting regulatio ndards, and other industry-specific accounting procedures. In other words, these eet rules and regulations a company must follow while preparing its financial data » Important Points + These accounting principles are based on Objectivity, which means Verifiability. This implies that the information to be entered in the books of accounts must be factual in nature and can also be verified at later stages when needed. Even though subjective data appears to be superior to verified data, verified data should always be used eee oy RTO eet Plame) (CM ciel Lael) Gis oR ene MasterClass resieoccag Extra) Download App Question 3:View this Question Online > Given below are two statements. one is labelled as Assertion A and the other is labelled as Reason R Assertion A: IFRS and GAAP are two accounting systems for international acceptance. Reason R: Indian Accounting Standards (Ind AS) ai GAAP. e In light of the above statements. ef) st appropriate answer from the options given below ‘gence with both. the IFRS and the 1. Both A and Rare the correct explanation of A 2. Bott SG" but R is NOT the correct explanation of A s correct but R is not correct 4. Ais not correct but Ris correct Answer (Detailed Solution Below) Option 3: Ais correct but R is not correct Indian Accounting Standards and IFRS Question 3 Detailed Solution The correct answer is Ais correct but Ris not correct. o Key Points Assertion A is correct because IFRS and GAAP are indeed two accounting systems competing for international acceptance. + IFRS is the abbreviation for International Financial Reporting Standards, and GAAP is the abbreviation for Generally Accepted Accounting Principles. IFRS is a set of global acco standards that are used by over 150 countries. GAAP is a set of accounting standard used in the United States. + There are a number of reasons why IFRS and GAAP are competing for i acceptance. One reason is that the increasing globalization of busine: it more important for companies to have their financial statements pre} yy that is world. than GAAP, which means andards in different situations. understandable and comparable to investors and credit + Another reason is that IFRS are seen as being more p: that they provide more flexibility for companies t This can be seenas an advantage by so! Se ile others prefer the more detailed guidance of GAAP. Reason R is incorrect because |: nce Co" IFRS does not mean that it is not a competitor to GAAP. Ind AS is sti ‘ging with GAAP, which means that itis still a competitor to both systems. + Ind AS is a set of accounting standards that are used in India. They ere currently convergingSEE SINE AE Cae Sey fee Ree 5A enV ORC ENG Na) Ms ME Menne uey NUL OP eTC COMPRES. CO TeIN NS SPOUT MA mee SUED SAMS SRE EE However, Ind AS are not yet fully converged with IFRS or GAAP. This means that there are still some differences between Ind AS and the other two systems. + Even if Ind AS fully converges with IFRS, it will stil be a competitor to GAAP because it will still be a different set of accounting standards. For example, Ind AS may have different rules for how to account for certain transactions than GAAP. This means that companies that use ind AS will have different financial statements than companies that use GAAP. In conclusion, Assertion A is correct because IFRS and GAAP are indeed two accounting systems competing for international acceptance. Reason Ris incorrect because Ind AS convergence does not mean that it is not a competitor to GAAP. IFRS Hence, the correct answer is the correct answer is Ais correct but Ris not correct. SP aarti) Start Complete Exam Preparation Par bec maar Gli ern CJ Cece Download App Reem cotta Question 4: View this Question Online > Which one of the following Ind AS is related to “The Effects Of Changes in Foreign Exchange Rates"? : 1. Ind AS 19 2. Ind AS 115 3. Ind ASA03 gm” Answer (Detailed Solution Below) Option 4: Ind AS 21 Indian Accounting Standards and IFRS Question 4 De! The correct answer is Ind AS 21.© Key Points + Indian Accounting Standard (Ind AS) 21, The Effects of Changes in Foreign Exchange Rates, is the relevant Ind AS for accounting for foreign currency transactions and foreign operations. It prescribes how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. + Ind AS 21 defines a foreign currency transaction as “a transaction that is denominated in a currency other than the functional currency of the entity.” A foreign operation is "a subsidiary, associate, joint venture or branch of an entity whose functional currency is different'from the reporting entity's functional currency.” + Ind AS 21 requires that foreign currency transactions be recorded at the spot exchange rate on the date of the transaction. The resulting foreign currency ménetanjitems are translated into the functional currency at the closing rate on the balance sheet date. Foreign currency non- monetary items are translated at the historical exchange rate on the date of the transaction &; Additional Information IND AS 19, Employee Benefits, Bigs principles for the recognition, measurement, presentation, and disclosure of employce benefits. Employee benefits include all forms of deferred compensation, such as pensions, post-retirement health care, and other long-term benefits. IND AS 115, Revenue from Contracts with Customers, sets out the principles for recognizing revenue from contracts with customers. Revenue should be recognized when it is earned and realized or realizable. The standard also provides guidance on how to determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue over time. IND AS 103, Business Combinations, establishes principles for accounting for business combinations. A business combination is a transaction or event in which an acquirer obtains control of one or more businesses. The standard requires the acquirer to measure the identifiable assets acquired and liabilities assumed at fair value on the acquisition date. The acquirer also recognizes goodwill or a gain fram a bargain purchase Hence, The correct answer is Ind AS 21. eee see peta ec eet PS elem CM Cima leh) Weaury abe Cee Cee Download App Question 5: View this Question Online > Match List | with List II List-1 AccountingStandard | peepee [investments in A. |ind-As:1 | (1) [Associates and Jot entures Presentation of B, fadsasss: 0 ‘nancial Statements interim Financial C }nd-AS:28 | (0) Ro ooring .ccounting policies. changes in D. |ind-as:34 }(W) ccounting [estimates and Errors Choose the correct answer from the option: - 1. (A)- 0, @) - 1), (Q (0) - ay ~ 1, (Q- Y), ©) - ne, 4. (A) - (Ill), (B) - (IV), (C) - (0, (©) - Answer (Detailed Solution Below) Option 2: (A) - (II), (8) - (IY), (©) - (, (B) - (I) Indian Accounting Standards and IFRS Question 5 Detailed Solution o Key Points‘Account ing Description Standard Presentation of Financial (lyJStatements [Accounting policies. changes Blind - AS : 8], lin Accounting Estimates and Ors lind- AS: |) investments in Associates and| 28 Lot ventures pita AS: uffnterim Financial Reporting lAlind - AS :1 Ba » Important Points Ind AS 1 — Presentation of Financial Statements: wy + This Standard prescribes the basis for the presentation of cee 2 statements to ensure comparability both with the entity's fe sta vious periods and with the financial statements of other entities. + It sets out overall requirements for the presentation of fin iS \a for their structure, and minimum requirements for their content Ind AS 8 - Accounting Pol ies, Changes in Acco’ stimates S Errors: + This Standard’s goal is to specify the standards for choosing and altering accounting policies, as well as the accounting treatment and disclosure of such modifications as adjustments to accounting estimates and error corrections. + The objective of the Standard is to improve the financial statements of a business in terms of their relevance, dependability, and comparability through time and with those of other entities. + Disclosure requirements for accounting policies, except those for changes in accounting policies are set out in Ind AS 1, Presentation of Financial Statements Ind AS 28 - Investments in Associates and Joint Ventures: + The purpose of this Standard is to establish the requirements for applying the equity method for accounting for investments in associates and joint ventures, as well as to regulate the accounting for investments in associates. * This Standard shall be applied by all entities that are investors with joint control of, or significant influence over, an investee. Ind A$ 34 - Interim Financial Reporting: + This Standard’s goals are to establish the minimum requirements for an interim financial report's content as well as the rules for asset recognition and cost accounting in full or consolidated financial statements for interim periods. + Investors, creditors, and other parties are better able to comprehend an entity's capability to create earnings end cash flows as well as its financial situation and liquidity when interim nancial reports are timely and accurate. + This Standard does not mandate which entities should be required to publish interim financial reports, how frequently, or how soon after the end of an interim period. However, governments, securities regulators, stock exchanges, and accountancy bodies + Often require entities whose debt or equity securities are publicly traded to publish interim financial reports.Top Indian Accounting Standards and IFRS MCQ Objective Questions & SR ABR Rel) Start Complete Exam Preparation Re en Bie eed) rrr ion Bank Download App Question View this Quostion Gntine > Which of the following is not an accounting convention? 1. Convention of full disclosure 2. Convention oftcOnseryatism 3) A of accrual accounting 4. Convention of consistency Answer (Detailed Solution Below) Option 3: Convention of accrual accounting Indian Accounting Standards and IFRS Question 6 Detailed Solution The incorrect Answer is Convention of accrual accountiny © Key Points + Accounting conventions are rules followed by business organisation as a practice worldwide. + There is no binding on such organisations to strictly follow those conventions, but same type of indust ‘es, thats why other orga: 7n the market follows the pra follows the same. + There are four major ing conventions namely + Convention of full disclosure > Convention of materiality > Convention of Conservatism> Convention of consistency Hence, Convention of accrual accounting is not an accounting convention ieee ec RCO acest Pla mei) (CMC m tere lecel) es Okea Prac) resieucrg Exotic) Download App Dos ciaerery ‘Question 7 View this Question Online > Match List | with List II List| List I Provisions, Contingent A ina ~AS:) | liabilities and Contingent |Assets g.[nd-AS:| 5, Fonsolidated Financial “Rg * Statements cfnd-AS:| ,, Presentation of Financial “BT * Statements pnd -AS:] jy, Financial reporting in ‘Hi10 |-yperinflationary Econofties Choose the correct answer from the options given below: 1. A- WB Ul, Cll D - 1 \ 2)A=ill, B-1V,C-1.D-I 3. A-Il,B-,.C-ILD-IV 4. A-NV,B-Ill,C-D-IAnswer (Detailed Solution Below) Option 2: A- Ill, B-IV,C-1, D-II Indian Accounting Standards and IFRS Question 7 Detailed Solution The correct answer is A - lll, B-IV,C -1, D-Ill © Key Points List 1 List II resentation of Financial And asea statements Financial reporting in Bind -AS:29 |IV. [yperinflationary ‘conomies rovisions, Contingent C.Jind -AS:37 || fisbiltes and ‘ontingent Assets ‘ onsolidated Financial @ D.|Ind - AS: 110] 11. Forse cae ot » \mportant Points Noe Indian Accounting Standard (Ind AS) 1: + This Standard prescribes the basis for statements to ensure comparability periods and with the financial statements entities + It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. ntati jeneral purpose financial ntity’s financial statements of previous Indian Accounting Standard (Ind AS) 29: + This Standard shall be applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy + Ina hyperinflationary economy, reporting of operating results and financial position in the local currency without restatement is not useful Indian Accounting Standard (Ind AS) 37: + The objective of this Standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assetsand that sulficient information Is disclosed in the notes to enable users to understand their nature, timing and amount. Indian Accounting Standard (Ind AS) 110: + The objective of this Indian Accounting Standard (Ind AS) is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities. & India’s #1 Learning Platform Start Complete Exam Preparation Fayeeiod one) Pabocac acca CCl resend Px tc a) Download App Question 8 The sources of the Indian GAAP (IGAAP) include: A. Indian Companies Act, 2013 B. Notifications issued by Ministry of Finance C. Accounting standards D.ICAI's pronouncements Choose the correct answer from the options given below: 1. Aand C only 2. B, C,and D only a B, and Conly 4. A, Cand D only Answer (Detailed Solution Below) Option 4: AC, and D only Bee ac eet View this Question Online >Indian Accounting Standards and IFRS Question 8 Detailed Solution The correct answer is A, C, and D only. © Key Points GAAP (Generally Accepted Accounting Principles) - The framework for more intricate and thorough accounting regulations, standards, and other sector- specific accounting procedures is provided by generally accepted accounting principles (GAAP), which are fundamental accounting concepts and recommendations. 2» Important Points IGAAP, are Indian Generally Accepted Accounting Principles. in india, accounting standards published by the Institute of Chartered Accountants of India (ICAI) and the laws outlined in the relevant applicable statutes are used to generate financial accounts. Indian Companies Act, 2013- * An Act of the Indian Parliament on Indian company law, the Companies Act 2013, governs the incorporation of a company, its duties, its directors, and its dissolution, _ + For example, Schedule Ill of Companies Act, 2013 should be compulsorily Followed by all companies and gives the format of financial statements. i + Thus, Indian Companies Act, 2013 includes in IGAAP. Accounting standards- c * A unified collection of guideline; ve as the foundation for financial accounting rules and practices is known as an accountim@standard. * Accounting Standards are mandatory to followed by all firms & companies + There are total 32 Accounting standards in India which should be followed by every single firms and companies. + Accounting standard are also included in IGAAP. + Recently to meet international accounting standards ICAI also includes Ind ASs (Indian Accounting Standards). + Thus, Accounting Standards are included in IGAAP. ICAI's pronouncements- * It is an official or authoritative statement or announcement. + These pronouncements include Engagement and Quality Control Standards, Guidance Notes onaccounting and Statements on Accounting. + The ‘Handbook of Accounting Pronouncements’is issued by ICAI with a view to provide the text of all these pronouncements to the members at one place. + These statements gives guidance to the companies to follow Accounting Standards. + Thus, these are also includes for IGAAP. Ca eee ee © Trusted by ,96,0,449+ student Start Complete Exam Preparation career ee ral perDownload App Question 9 Match List 1 with List 2 List-1 List-2 A. Ind AS & 1. Statement of cash flows manda | 2 Ace oles Charges C.Ind AS7 3. Related Party Disclosure. D. Ind AS 24 Jconlicane Financial, Choose the correct answer form the options given below: 1: 3,B-4,C-2,D-1 . 2 A-2,B-4,C-3,D-1 3. A-2,B-4,C-1,D-3 4 A-4,B-2,C-1,D-3 Answer (Detailed Solution Below) Option 3:A-2,B-4,C-1,D-3 View this Question Online > Indian Accounting Standards and IFRS Question 9 Detailed Solution @ Key Points Indian Accounting Standards, also known as IND AS, are converged standards for International Financial Reporting standards. To put it simply. Indian accounting standards were created to comply with International Financial Reporting standards.The correct match is given below: List-1 List-2 2. According Policies Changes in ALliGASS: | Accounting Estinutes and Erion. 4, Consolidated Financial B. Ind AS 110 | Corn snts C.ind AS7 | 1. Statement of cash flows D. Ind AS 24 | 3. Related Party Disclosure. A. Ind AS 8: » Important Points YG + The accounting policies, changes in accounting estimates and err + This standard’s goal is to specify the standards for choosing a y Ind AS 8. counting policies, as well as the accounting treatmant and disclos adjustments to accounting estimates and error co! standard aims to improve the financial statements of an entity's relevance, deper and comparability through time and with the financial statements of o siness B. Ind AS 110: + Consolidated Financial Statements are addressed in Indian Accounting Standard 110. + Establishing guidelines for the compilation and presentation of consolidated financial statements when an entity controls one or more other entities is the goal of this Indian Accounting Standard (Ind AS). C. Ind AS 7: * The Statement of cash flows is a component of Ind AS 7. Users of financial statements can analyse an entity's capacity to produce cash and cash equivalents and its requirements for utilizing those cash flows using information about the entity's cash flows. The ability of an entity to generate cash and cash equivalents, as well as the timing and certainty of their generation, must be assessed in order for users to make economic decisions. + By using a statement of cash flows that divides cash flows over the period into operating, investing, and financing activities, this standard seeks to compel the supply of information on the historical changes in cash and financial equivalents of a company. D. Ind AS 24: + Related Party Disclosure is related to Ind AS 24, * This standard aims to ensure that an entity's financial statements include the disclosures required to highlight the possibility that the existence of related parties, as well as transactions and outstanding balances, including commitments with such parties, may have had an impact on the entity's financial position and profit or loss.Pree eeeoy Start Complete Exam Preparation CRCeo Lm cotta ea bec mance (Ge ee Download App Question 10 View this Question Online > Match the iterns of List I with the items of List I! and choose the correct answer from the code given below. List 1 List Il > & Accounting for fixed assets (b)]AS-3 | (i) Disclosure.of accounting policie (Q]AS -10 (i Leases and its accounting A (iv) Cash flow statements 1. (@) - Gi, (6) - (4), © - @, 2. (a) - (i), (b) - Gi, (©) - Gil), (A) - (iv) 3. (a) - Gili), (b) - Gi), © - @, ) - iv) 4. (a) - (ili), (B) - @, (9 - Gv), (A) - GD) Answer (Detailed Solution Below) Option 1 : (a) - fil), (b) - (iv), (Q - (@, (@) - Gi). Indian Accounting Standards and IFRS Question 10 Detailed Solution The correct answer would be: (a)-(ii),(b)-(iv),(c)-(i),(d)-(iii).C@key-Points Explanation: Accounting Standards ¢ . It is applicable to all corporate: They are operational since the da¥= Ay its enactment and specified in the standards . The Accounting Standards Board is entrusted with the responsibility of formulating standards on accounting matters in congruence to the International developments and legal requirements in india. . The Accounting Standards are mandatory for all companies. . The Institute of Chartered Accountants of India(ICAl) has so far issued 29 accounting standards. > AS-1: Disclosure of accounting policies (January 1979). It deals with the disclosure of significant accounting policies in the financial statements. + AS-3: Cash flow Statements, it deals with the financial statement which summarises for a given period the sources and applications of an enterprise. < AS8-10: Property, Plant, and Equipment. The standard deals with the recognition of fixed assets grouped into various categories such as land, goodwill, patents, and designs. + AS-19: Leases(January 2001). It deals with the accounting treatment of transactions related to leasing agreements. . Accounting Standards ir a practices and common techniques of accounting. ReN an co ieee arc Rea certs PTE Ta me (CMC imate tele cel) eR sr eer Co cota Download App Question 11 View this Question Online > Which of the following events after the balance sheet date would normally. qualify as adjusting events according to AS-4 (Events after balance sheet date)? (A) The insolvency of e customer on the balance sheet date (8) A decline in the market value of investments (©) The declaration of an ordinary dividend (D) The determination of the cost of assets purchased before the balance sheet date Choose the/most’appropriate answer from the options given below: MAO and'(D) only2. (A) and (8) only 3. (8) and (Q) only 4, (A) and (D) only Answer (Detailed Solution Below) Option 4: (A) and (D) only Indian Accounting Standards and IFRS Question 11 Detailed Solution The correct answer is (A) and (D) only e Accounting Standarc Accounting Standard 4 (AS 4) pertains to the treatment of the following items in the financial statements: * Contingencies + Events occurring after the balance sheet date » Important Points A, v Events Occurring after the Balai cet Date: 1. Events which occur between the balance sheet date and the date on which the financial statements are approved, may indicate the need for adjustments to assets and liabilities as at the balance sheet date or may require disclosure 2. Adjustments to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at the balance sheet date. For Example: For example, an adjustment may ke made for a loss ona trade receivable account which is confirmed by the insolvency of a customer which occurs after the balance sheet date 3, Adjustments to assets and liabilities are not appropriate for events occurring after the balance sheet date, if such events do not relate to conditions existing at the balance sheet date. India’s #1 Learning Platform Rea Pot Start Complete Exam Preparation Gipee mpes lees Decoy Cres iea og Exeter)Download App Question 12 ww View this Question Online > As per Section 143 (9) of Companies Act 2013, every auditor is required to 1. attend any general meeting 2. report frauds © 3 .. auditing standards issued by ICAI 4, sign the report Answer (Detailed Solution Below) Option 3: Comply with auditing standards issued by ICAI Indian Accounting Standards and IFRS Question 12 Detailed Solution The correct answer is to comply with auditing standards issued by ICAI © Key Points Auditor: An auditor is an authorized person who verifies and reviews the financial records and financial statements of a company and ensures that they are prepared in accordance with the norms. He also checks whether any tampering or manipulation has been done with the financial data with the aim of hiding any fraud or malpractice within the company AAs per Section 143 (9) of the Companies Act/'2013, every auditor is required to follow the auditing standards prescribed by ICAI ICAI stands for The insite ORR tred Accountants of India + Every auditor is required to attend any general meeting under Section 292A of the Companies Act, 2013. + Every auditor is required to report fraud under Subsection (12) of Section 143 of Act, 2013 + Every auditor is required to sign the report under Section 145 of the Companies Act, 2013.PS eTa me) CM climes teh tol) Pan es (beac Gc t es peal igri Download App Question 13 View this Question Online > deals with ‘Objectives and Scope of Audit of Finaficial Statements: 1, SA 500 2. SA 400 3. SA 200 WA Answer (Detailed Solution Below) Option 3: SA 200 Indian Accounting Standards and IFRS Question 13 Detailed Solution SA 200 is one of the Standards on Auditing (SAs) that deals with the Overall Objectives of the Independent Auditor and the Conduct of an Audit of Financial Statements in accordance with Standards on Auditing. © Key Points + SA 200 establishes the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with SAs. + The Standard explains the nature and scope of an audit designed to enable the independent auditor to meet those objectives. + The Standard also explains the Scope, authority, and structure of the SAs, and includes requirements establishing the general responsibilities of the independent auditor appliceble in all audits, including the obligation to comply, with the SAs + The Standard has to be adapted as;necessary in'the circumstances when applied to audits of other historical financial information, ©; Additional Informati@Ay1. $A500 Audit Evidence explains what constitutes audit evidence in an audit of financial statements, and deals with the auditor's responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor's opinion. 2, $A 300 deals with the auditor's responsibility towards planning for an audit of financial statements and its context is focused more on a recurring audit. » Important Points + SA 400 is not a Standards on Auditing (SAs). a Tee Peru) ORC DR cesta Start Complete Exam Preparation Teo Practice pie aca eco resin Download App Ga xy ‘Question 14 View this Question Online > Match List-I with List-Il: List-1 List-l la) find AS-16_|})_income tax lbiind As-38 Leasing, Ic) Jind AS-17, Intangible assets Id)JInd AS-12_|iv) Property, plant and equipments Choose the correct option from those given below: 1. a-iv, b-iii, c-i, d-ii 4, aciv, beilcipd:ilt. r (Detailed Solution Below) Option 2: a-iv, b-iii, c-ii, d-i Indian Accounting Standards and IFRS Question 14 Detailed Solution The Indian Accounting Standards (Ind AS), as notified under section 133 of the Companies Act 2013, have been formulated keeping the Indian economic & legal environment in view and with a view to converging with IFRS Standards, as issued by and copyright of which is held by the IFRS Foundation. The following are the correct match: ek List Property, Plant, and Equipment lIndlprescribe the accounting treatment for Jproperty, plant, and equipment so that jusers of the financial statements can ldiscern information about an entity's lasjitivestment in its property, plant, and lequipment and the changes in such Ee carnit: lindian Accounting Standard (Ind AS) 16,|An intangible asset is an identifiable lnon-monetary asset without physical lcubstance that's the definition from Ind- las /AS 38. Indl Overview. IAS 17 sets out the required laccounting treatments and disclosures for inance and operating leases by both llessors and lessees. a linc |, |Dpfinitions: A finance lease - a lease that ransfers substantially all the risks and rewards of ownership. lind AS 12 requires recognition of tax consequences of the difference between lindfthe carrying amounts of assets and liabilities and their tax base. Current tax is he amount of income taxes payable |AS{(t@coverable) in respect of the taxable rofit (tax loss) for a period. Therefore, the correct option is a-iv, b- rN ESE Sen ert Start Complete Exam Preparation Wau Pi hecasd rvs Cee Download App Question 15 Match List | with List II eet List -1 Accounting “ot Senda Description investments in A. |ind-as:1 | (1) [Associates and Jot entures, . resentation of B. nd AS: | (I) Financial Statements interim Financial acne ott View this Question Online >1 stimates and Errors Choose the correct answer from the wt 1. (A) - (I), (B) - (MN, (©) - @, (),- wy e 2. (A)- (), (8) - Si - my 3. cen (9-0), ©) -O kG; ~ (HH), (B) - IY), (© - (9, (B) - Answer (Detailed Solution Bolow) ope [EE Reporting courting policies. D. |ind- as :34 |(M) er Option 2: (A) - (II), (B) - (IY), (©) - @, (B) - (UD) Indian Accounting Standards and IFRS Question 15 Detailed Solution @ Key Points List| List - lAccounting Description Standard ~ | [Presentation of Financial [Alin 4S: Naifsratements lAccounting policies. changes Bling - aS 8}, fin Accounting Estimates and rors(yor ventures terim Financial Reporting (ui » \mportant Points Ind AS 1 — Presentation of Financial Statement: + This Standard prescribes the basis for the presentation of general-purpose statements to ensure comparability both with the entity's financial st periods and with the financial statements of other entities. * It sets out overall requirements for the presentation of fin: cS structure, and minimum requirements for their content. ious idelines for their Ind AS 8 - Accounting Policies, Changes in Acco stimates SG: Errors: + This Standard's goal is to specify the standards for choosing and altering accounting policies, as well as the accounting treatment and disclosure of such modifications as adjustments to accounting estimates and error corrections. + The objective of the Standard is to improve the financial statements of a business in terms of their relevance, dependability, and comparability through time and with those of other entities. * Disclosure requirements for accounting policies, except those for changes in accounting policies are set out in Ind AS 1, Presentation of Financial Statements Ind AS 28 - Investments in Associates and Joint Ventures: + The purpose of this Standard is to establish the requirements for applying the equity method for accounting for investments in associates and joint ventures, as well as to regulate the accounting for investments in associates. + This Standard shall be applied by all entities that are investors with joint control of, or significant influence over, an investee. Ind AS 34 - Interim Financial Reporting: + This Standard's goals are to establish the minimum requirements for an interim financial report's content as well as the rules for asset recognition and cost accounting in full or consolidated financial statements for interim periods. * Investors, creditors, and other parties are better able to comprehend an entity's capability to create earings and cash flows as well as its financial situation and liquidity when interim ancial reports are timely and accurate. * This Standard does not mandate which entities should be required to publish interim financial reports, how frequently, or how soon after the end of an interim period. However, governments, securities regulators, stock exchanges, and accountancy bodies + Often require entities whose debt or equity securities are publicly traded to publish interim financial reports