Test: Accounting Standards

Indian Accounting Standards Board 

Indian accounting Standards Bulletin 

International Accounting Standards Bulletin 

International Accounting standards Boards 

Principles 

Methods of applying those principles

Both (a) and (b)

None 

(A) – (iii), (B) – (iv), (C) – (ii), (D) – (i)

(A) – (ii), (B) – (iv), (C) – (i), (D) – (ii)

(A) – (ii), (B) – (iv), (C) – (iii), (D) – (i) 

(A) – (iii), (B) – (iv), (C) – (i), (D) – (ii)

Disclosure of Accounting Policies 

Valuation of Inventories 

Revenue Recognition 

Depreciation Accounting 

The choice between different alternative accounting treatments is difficult. 

There may be trend towards rigidity. 

Accounting Standards cannot override the statute. 

All of the above. 

Business standards 

Accounting standards 

Market standards

None of the above. 

AS 6

AS 10

AS 3

AS 2

Harmonise accounting policies. 

Eliminate the non-comparability of financial statements. 

Improve the reliability of financial statements. 

All of the above. 

Central Govt.

State Govt.

Institute of Chartered Accountants of India.

Reserve Bank of India.

25.

20.

32.

2.

All the companies in the same industries should use identical procedures and methods

Income and assets have not been overstated

Accounting methods and procedures used have to be consistently applied from year to year 

Any accounting method or procedure can be utilized.

Transparency. 

Consistency.

Comparability.

All of the above.

Is replaced by AS – 26

Is applicable only to listed companies 

Is mandatory for Research Institutions 

Is still in use. 

Can over-ride 

Cannot over-ride

May over-ride 

None

Harmonise accounting policies 

Eliminate the non comparability of financial statements 

Improve reliability of financial statements 

All of the above