03 April 2009
Dear Sir/Madam, I have the following doubt:
Before the Companies accounting standards rule came out,the following was the situation-- Companies were required to follow Sch VI requirements and also the AS as issued by ICAI and in case of conflict,the SCH VI would prevail.
Then the above rule came out which provides as a note that the auditor has to ensure that AS 1-7 and 9-29 are followed by companies. It further provides in its annexure that these standards are meant to be in comfirmity with law,however if there is a conflict due to any SUBSEQUENT AMENDMENTS IN LAW, the law shall prevail.
My question is: Does it mean that at present the situation is that the AS overule SCH VI but only upon any subsequent amendments in SCH VI the law will prevail?? How to answer a question in the exams?...as per AS or as per SCH VI?
03 April 2009
yes it means that the present AS over rules sch vi and on amendment if any conflict arises than sch vi will prevail... so in exams u have to answer accordingly... for present AS ans as per AS and for any amended AS if there is any conflict than ans as per sch vi... do specify in exam...
CAclubindia
