Untitled Quiz

After studying this Unit you will be able to: (Select all that apply)

Accounting is only concerned with recording day-to-day transactions in a significant and orderly manner.

A standard is a particular level of performance, goal or target.

The Institute of Chartered Accountants of India (ICAI) was constituted on 1st April 1877 to formulate accounting standard applicable to Indian enterprises.

What is the primary role of Accounting Standards?

Which of these options are correct? (Select all that apply)

What is the purpose behind the 'study group' in the procedure for setting Accounting Standards?

Accounting Standard-3 is related to Foreign exchange rate.

International Financial Reporting Standards (IFRSs) are developed by:

IFRSs are followed in more than 114 countries of the world, making it a universal accounting language.

The accounting standards in India are issued by The Institute of Cost Accountants of India.

Accounting Standards and Indian Accounting Standards are the same.

The Central Government under section 133 of the Companies Act, 2013 has notified all 29 accounting standards.

The Accounting Standard Board was constituted on 21st August 1977.

Accounting Standards are verbal policy documents.

Accounting Standards are issued by:

Indian GAAPs are only useful in India, while IFRSs are applicable globally.

The IFRS Foundation is headquartered in London.

The IFRS Foundation is a set of high quality, understandable and enforceable global accounting standards.

The converged standards with the IFRSs are named as Indian Accounting Standards (Ind ASs).

Ind ASs are numbered in the same way as the corresponding IFRSs.

Accounting standards are not essential for ensuring the comparability and reliability of financial statements.

What is the primary purpose of Accounting Standards in harmonizing accounting practices and reducing confusion?

The Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India (ICAI) was constituted on 21st April 1977.

The IFRS Foundation is an independent organization that sets standards for global financial reporting. Its headquarter is London.

The IASB is the independent standard setting body of the IFRS Foundation

The IFRSs are followed only in more than 114 countries of the world.

The IASB is the independent standard setting body of the IFRS Foundation, its head-quarter is London.

The IFRSs are followed in more than 114 countries of the world.

Financial statements consist of a statement of financial position, a statement of comprehensive income, a statement of changes in equity and a statement of cash flow.

India made a commitment to G20 to follow IFRSs from 2011.

India has accepted the option of adopting IFRSs rather than converging them with its own accounting standards.

The Ministry of Corporate Affairs has notified Ind ASs as Companies (Indian Accounting Standards) Rules 2013.

Ind AS 1 represents the accounting standard for Presentation of Financial Statements.

Ind ASs are named and numbered in the same way as the corresponding IFRSs.

The Ministry of Corporate Affairs has set a roadmap for the implementation of Ind ASs.

The implementation of Ind AS 115, revenue from contracts with customers', has been postponed.

US GAAPs are the same as Indian GAAPs.

Indian GAAPs require companies to adopt international standards, such as IFRSs.

Indian GAAPs and IFRSs are both based on the same conceptual framework, making them easily interchangeable.

Indian GAAPs focus on historical cost accounting, while IFRSs emphasize fair value accounting.

IFRSs mandate the use of the same cost formula for all inventories with similar nature and use to the entity, whereas AS-2 doesn't require this.

Both IAS-2 and AS-2 include the stipulation for using the same cost formula for inventories.

AS-3 is silent on the exemption for small and medium-sized enterprises (SMEs) when preparing cash flow statements.

IAS-7 mandates that bank overdrafts should be treated as cash/ cash equivalents.

AS-3 allows interest and dividend to be classified under either Operating Activities or Financing Activities.

AS-3 does not include any provision for extraordinary items.

AS-3 mandates disclosure of interest and dividend paid under either operating activities or financing activities only.

According to AS-3, a company is required to disclose extraordinary items in consolidated financial statements.

AS-3 mandates disclosure of interest and dividend paid under Financing Activities only.

AS-3 requires a consolidated financial statement to include information on cash flowing from consolidated financial statements.

AS-4 addresses the accounting for proposed dividends by stating they should not be shown as a liability.

AS-4 requires disclosure of a proposed dividend as it is specifically mandated by statutory requirement.

Both AS-4 and AS-5 cover income and expenses in the definition of prior period items.

AS-5 provides specific guidance for handling changes in the method of depreciation, except for a change in policy, which should be considered as a change in accounting policy.

The effect of changes in accounting policies should be reflected in the current year's P&L.

AS-5 covers only incomes and expenses in the definition of prior period items.

AS-9 allows the use of the completed service contract method, but not the proportionate completion method, for recognizing revenue.

AS-9 specifies that interest income should be recognized on a time proportion basis, while AS-18 mandates a different approach.

AS-9 permits recognition of revenue when goods are manufactured, identified, and ready for delivery, whereas IAS-18 has no such provision.

IAS-16 mandates the use of component accounting, while AS-10 recommends it but doesn't enforce it.

AS-10 mandates that only expenditures that increase the future benefits from an asset beyond its previously assessed standard of performance are included in the asset's gross book value.

Both IAS-16 and AS-6 require companies to retrospectively recompute depreciation when there is a change in accounting policy.

AS-6 mandates that a company is required to retrospectively re-compute depreciation when there is a change in the method of depreciation.

IAS-16 requires companies to retrospectively adjust depreciation for changes in accounting estimates.

IAS-16 requires companies to update revaluation estimates periodically as part of the revaluation process.

According to AS-6, a company is required to retrospectively re-compute depreciation when there is a change in the method of depreciation and adjust any excess or deficit on re-computation in the period in which the change is affected.

IAS-16 allows companies to treat depreciation on revaluation portion as a component of revaluation reserve.

AS-6 requires that the effect of changes in accounting policies should be reflected in the current year's P&L, while IAS-16 has a different approach.

AS-6 considers a change in accounting policy to be the same as a change in accounting estimates.