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Accounting standard as1

Punit Doshi (Student CA IPC / IPCC) (32 Points)

12 March 2016

This is the questn from May 2016 RTP IPCC regarding AS1. I am not able to understand the question. Can someone please simplify it. I have provided screenshots of the question and answer.

ANSWER:

This is the questn from May 2016 RTP IPCC regarding AS1.

I am not able to understand the question. Can someone please simplify it.

I have provided screenshots of the question and answer.

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2 Replies

CA Raj Doshi (Practising CA) (8924 Points)
Replied 13 March 2016

Q.1.a. Accounting standards bring uniformity among the various policies and practice by different companies thereby addressing the needs of users of financial statements.

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 13 March 2016

Q.1.b. A disclosure is not a remedy for an incorrect accounting treatment. The company should make a provision and /or disclose the amount ( ascertain the amount to the extent possible ) and nature of contingent liability in respect of overdue interest claims. The treatment of company is incorrect.

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