Definition , Scope & 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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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of accounting as defined by the American Accounting Association?
Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information.
What is the meaning of 'Ind AS' in Indian accounting terminology?
Indian Accounting Standards converged with IFRS for Indian entities.
Which body is responsible for issuing Indian Accounting Standards (Ind AS)?
The Institute of Chartered Accountants of India (ICAI) issues Indian Accounting Standards, which are notified by the Ministry of Corporate Affairs (MCA) under the Companies Act.
Which authority prescribes accounting standards applicable to banking companies in India?
Reserve Bank of India and Ministry of Corporate Affairs jointly.
What is the scope of financial accounting in a banking context?
Financial accounting in banks covers recording all monetary transactions, preparing financial statements like Balance Sheet and Profit & Loss Account, and disclosing financial performance to stakeholders including RBI and shareholders.
What is 'objectivity' as a qualitative characteristic in accounting information?
Information based on verifiable evidence, free from personal bias.
What does the 'going concern' concept assume in accounting?
The going concern concept assumes that a business will continue to operate indefinitely into the future, and therefore assets are valued at cost rather than liquidation value.
What is the 'cost concept' sometimes called in modern Ind AS framework?
Historical cost; Ind AS allows fair value as an alternative measurement.
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