Fill in the blank: Accounting Standards are issued by the Government in consultation with ___ and ___ to ensure proper recognition, measurement, presentation, and disclosure of financial transactions.

National Financial Reporting Authority (NFRA) and Ministry of Corporate Affairs (MCA)

True or False: Accounting Standards only provide guidelines for the presentation of financial statements and do not address the recognition of transactions.

False. Accounting Standards address recognition, measurement, presentation, and disclosure of transactions.

What role does the Accounting Standards Board (ASB) play in the Indian accounting framework?

The ASB formulates accounting standards in India.

• Ensures compliance with laws.

• Aligns with international practices.

• Supports local business needs.

True or False: The International Accounting Standards Board (IASB) issues standards that are only applicable to corporate entities.

False. IASB issues standards that are applicable to all entities, including non-corporates.

How many Accounting Standards are currently effective in India after the withdrawal of AS 6 and AS 8?

27 Accounting Standards are currently effective in India.

What is the significance of additional disclosures required by Accounting Standards?

Additional disclosures help stakeholders understand the accounting treatment of various items, thus facilitating informed business decisions.

True or False: The adoption of IFRS by a country means that it will completely disregard its existing accounting standards.

False. Adoption may involve integrating IFRS with existing standards rather than disregarding them completely.

What does the term 'creative accounting' refer to in the context of accounting standards?

Creative accounting refers to the manipulation of accounting policies to present financial statements in a misleadingly favorable manner.

Fill in the blank: The convergence process of Ind AS involves alignment of accounting standards with IFRS through a certain degree of ___ and ___ on accounting requirements.

Compromise and adaptation

What are the implications of mandatory compliance with Accounting Standards for corporate entities in India?

Mandatory compliance ensures that financial statements are prepared consistently, improving their credibility and comparability across enterprises.

True or False: The ASB of ICAI is a legislative body that can enforce compliance with accounting standards.

False. The ASB cannot enforce compliance as it is not a legislative body; it can only recommend standards to its members.