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FAQs on PPT: Accounting Standards (3) - Advanced Accounting for CA Intermediate
| 1. What are the key differences between Indian Accounting Standards (Ind AS) and the existing Accounting Standards (AS)? |  |
Ans. Ind AS are converged with International Financial Reporting Standards (IFRS), while AS are based on the guidelines issued by the Institute of Chartered Accountants of India (ICAI). Ind AS focus on principles-based standards, while AS are more rules-based. Ind AS require more disclosures and transparency compared to AS.
| 2. How are accounting standards determined in India? | |
Ans. Accounting standards in India are determined by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI). The ASB issues and revises the accounting standards based on international best practices and the evolving business environment.
| 3. What is the importance of complying with accounting standards for companies in India? | |
Ans. Compliance with accounting standards ensures consistency, comparability, and transparency in financial reporting. It enhances the credibility of financial statements, facilitates better decision-making by stakeholders, and promotes investor confidence in the company.
| 4. How do accounting standards impact financial statements of a company? | |
Ans. Accounting standards govern the recognition, measurement, presentation, and disclosure of various items in financial statements. Compliance with these standards ensures that financial statements accurately reflect the financial position, performance, and cash flows of the company.
| 5. How can companies stay updated with changes in accounting standards in India? | |
Ans. Companies can stay updated with changes in accounting standards by regularly monitoring updates from the Accounting Standards Board (ASB) of ICAI, attending seminars and workshops on accounting standards, and seeking guidance from professional accounting firms.
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