JAIIB · AFM

DEFINITION SCOPE AND ACCOUNTING STANDARDS INCLUDING IND AS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

What is the primary objective of accounting?

A

The primary objective of accounting is to provide financial information about an entity to stakeholders so they can make informed economic decisions.

Q

What is the full form of Ind AS?

A

Indian Accounting Standards converged with IFRS.

Q

Which body is responsible for setting accounting standards in India?

A

The Institute of Chartered Accountants of India (ICAI) is responsible for formulating accounting standards in India, in coordination with the National Advisory Committee on Accounting Standards (NACAS).

Q

Which ministry oversees the accounting standards framework for Indian companies?

A

Ministry of Corporate Affairs (MCA) oversees it.

Q

What does the term 'scope of accounting' refer to?

A

The scope of accounting refers to the range of activities it covers, including recording, classifying, summarising, interpreting, and communicating financial transactions of an entity.

Q

What is the full form of ICAI?

A

Institute of Chartered Accountants of India.

Q

What are Indian Accounting Standards (Ind AS)?

A

Ind AS are a set of accounting standards converged with International Financial Reporting Standards (IFRS), issued by the Ministry of Corporate Affairs (MCA) and applicable to specified classes of companies in India.

Q

What does IFRS stand for?

A

International Financial Reporting Standards.

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