Indas Interview Questions

Checkout Vskills Interview questions with answers in IndAS to prepare for your next job role. The questions are submitted by professionals to help you to prepare for the Interview.

Q.1 How does Ind AS 24 impact the disclosure of related party transactions?

Ind AS 24 expands on the disclosure requirements for related party transactions, emphasizing the need for transparency in reporting.

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Q.2 Explain the concept of "comparative information" as per Ind AS.

Comparative information refers to the inclusion of figures from the previous period in financial statements, enabling users to assess changes and trends.

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Q.3 What is the treatment of intangible assets acquired in a business combination under Ind AS 103?

Ind AS 103 requires the recognition and measurement of identifiable intangible assets acquired in a business combination separately from goodwill.

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Q.4 How does Ind AS 108 address the determination of the fair value of non-financial assets?

Ind AS 108 provides guidance on applying fair value measurement to non-financial assets, emphasizing market participants' perspective.

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Q.5 What is the scope of Ind AS 34 regarding interim financial reporting?

Ind AS 34 prescribes the minimum content of an interim financial report, ensuring that it provides relevant and reliable information.

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Q.6 Explain the difference between the cost model and revaluation model for property, plant, and equipment under Ind AS 16.

The cost model carries assets at their historical cost less accumulated depreciation, while the revaluation model allows for assets to be carried at fair value.

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Q.7 How does Ind AS 41 address the accounting for biological assets and agricultural produce?

Ind AS 41 provides guidance on recognizing and measuring biological assets and agricultural produce, reflecting the biological transformation and fair value changes.

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Q.8 What is the treatment of share-based payment transactions under Ind AS 102?

Ind AS 102 outlines the accounting for equity-settled and cash-settled share-based payment transactions, including employee stock options.

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Q.9 Can you explain the difference between "monetary items" and "non-monetary items" under Ind AS?

Monetary items are those whose amounts are fixed or determinable in terms of currency, while non-monetary items lack such fixed or determinable amounts.

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Q.10 How does Ind AS 109 address the classification and measurement of financial assets and financial liabilities?

Ind AS 109 introduces a classification and measurement approach based on the business model and contractual cash flow characteristics of financial instruments.

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Q.11 What are the requirements for the presentation of other comprehensive income under Ind AS?

Ind AS 1 outlines the presentation requirements for items recognized in other comprehensive income, including the option to present them either in one statement or two separate statements.

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Q.12 What is the purpose of Ind AS 7 on Statement of Cash Flows?

Ind AS 7 aims to provide information about an entity's cash inflows and outflows during a period, helping users assess its ability to generate cash and manage liquidity.

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Q.13 Can you explain the treatment of leases classified as finance leases under Ind AS 17?

Finance leases, as per Ind AS 17, are treated as a financing arrangement, with the leased asset recognized on the lessee's balance sheet along with a corresponding liability.

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Q.14 What is the significance of the "going concern" assumption in the preparation of financial statements under Ind AS?

The going concern assumption assumes that an entity will continue to operate in the foreseeable future. It's fundamental to the preparation of financial statements under Ind AS.

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Q.15 Explain the concept of segment reporting as per Ind AS 108.

Segment reporting involves disclosing an entity's financial and non-financial information by its business or geographical segments, enhancing transparency.

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Q.16 How does Ind AS 8 address accounting policies, changes in accounting estimates, and errors?

Ind AS 8 provides guidance on selecting and applying accounting policies, accounting for changes in estimates, and correcting errors in financial statements.

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Q.17 What is the treatment of investment property under Ind AS 40?

Ind AS 40 outlines the accounting treatment for investment property, which is property held to earn rentals or for capital appreciation.

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Q.18 Can you explain the treatment of borrowing costs as per Ind AS 23?

Ind AS 23 requires entities to capitalize borrowing costs that are directly attributable to the acquisition, construction, or production of qualifying assets.

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Q.19 What is the importance of fair value measurement in Ind AS financial reporting?

Fair value measurement provides users with relevant and reliable information about an asset's or liability's value at a given point in time.

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Q.20 Explain the treatment of research and development costs under Ind AS.

Research costs are expensed as incurred, while development costs are capitalized if certain criteria are met, as per Ind AS 38.

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Q.21 How does Ind AS 106 address exploration for and evaluation of mineral resources?

Ind AS 106 provides guidance on recognizing, measuring, and disclosing expenditures related to exploration and evaluation of mineral resources.

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Q.22 What is the concept of "derecognition" of financial assets and liabilities as per Ind AS 109?

Derecognition involves removing a financial asset or liability from the balance sheet when the contractual rights and obligations are extinguished.

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Q.23 Can you explain the concept of "market risk" and how it is addressed in Ind AS disclosures?

Market risk refers to the potential losses from changes in market prices or rates. Ind AS disclosures address how entities manage and measure this risk.

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Q.24 What is the treatment of revenue from contracts with customers involving multiple performance obligations under Ind AS 115?

Revenue from contracts with multiple performance obligations is allocated based on the standalone selling prices of each distinct obligation.

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Q.25 How does Ind AS 27 address the preparation and presentation of separate financial statements for subsidiaries, joint ventures, and associates?

Ind AS 27 provides guidance on the preparation and presentation of separate financial statements for subsidiaries, joint ventures, and associates.

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Q.26 Explain the concept of "net realizable value" and its application in Ind AS.

Net realizable value refers to the amount an entity expects to receive from the sale or use of an asset, less the costs of disposal. It's used in the valuation of inventories and other assets.

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Q.27 How does Ind AS 113 address the fair value measurement of financial instruments?

Ind AS 113 provides guidance on determining the fair value of financial instruments and categorizes inputs into a fair value hierarchy.

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Q.28 Explain the significance of the effective date of an Ind AS.

The effective date is when an Ind AS becomes applicable. It's crucial for companies to ensure proper transition and adherence to the standard's requirements.

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Q.29 Can you discuss the treatment of defined benefit plans under Ind AS 19?

Ind AS 19 prescribes accounting and disclosure requirements for defined benefit plans, focusing on estimating and recognizing the obligation and cost.

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Q.30 What is the role of the National Financial Reporting Authority (NFRA) in relation to Ind AS?

The NFRA oversees the quality of financial reporting in India, including adherence to Ind AS, to ensure accurate and transparent financial information.

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Q.31 Explain the concept of "probable" as used in the recognition of provisions under Ind AS 37.

"Probable" refers to a situation where it is more likely than not that a liability will be settled, leading to a recognition of a provision as per Ind AS 37.

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Q.32 What is the treatment of impairment of non-financial assets under Ind AS 36?

Ind AS 36 requires entities to assess whether their non-financial assets are impaired and recognize an impairment loss if the asset's carrying amount exceeds its recoverable amount.

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Q.33 How does Ind AS 21 address the translation of financial statements of foreign operations?

Ind AS 21 provides guidance on how to translate foreign operations' financial statements into the entity's presentation currency, addressing exchange rate changes.

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Q.34 Can you explain the concept of "control" as per Ind AS 110?

Control, as defined in Ind AS 110, is the power to direct the financial and operating policies of an entity to obtain benefits from its activities.

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Q.35 What is the treatment of provisions, contingent liabilities, and contingent assets under Ind AS 37?

Ind AS 37 guides the recognition and measurement of provisions, contingent liabilities, and contingent assets, emphasizing reliable estimates and disclosures.

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Q.36 How does Ind AS 109 address hedge accounting and risk management?

Ind AS 109 introduces a comprehensive hedge accounting framework that aligns risk management strategies with accounting treatment.

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Q.37 What is the treatment of government grants related to assets under Ind AS 20?

Ind AS 20 provides guidance on recognizing government grants related to assets at fair value or as a deduction from the carrying amount of the asset.

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Q.38 Explain the concept of "interests in other entities" and how they are accounted for under Ind AS.

Interests in other entities include investments in associates, joint ventures, and subsidiaries. They are accounted for using equity method, proportionate consolidation, or consolidation.

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Q.39 How does Ind AS 21 address the translation of transactions in foreign currencies?

Ind AS 21 guides the accounting for foreign currency transactions, including the determination of the transaction's functional currency and recognition of exchange differences.

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Q.40 Can you discuss the treatment of non-controlling interests (NCIs) under Ind AS 110?

Ind AS 110 outlines the accounting for NCIs, requiring them to be measured at their proportionate share of the acquiree's net identifiable assets.

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Q.41 Explain the role of "immaterial departures" in the application of Ind AS.

Immaterial departures refer to situations where the application of a principle or requirement in Ind AS results in immaterial misstatements. In such cases, entities may not need to adjust their financial statements.

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Q.42 What is the treatment of borrowing costs as per Ind AS 23?

Ind AS 23 allows entities to either capitalize or expense borrowing costs related to qualifying assets, with the option of using specific criteria for capitalization.

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Q.43 How does Ind AS 28 address accounting for associates and joint ventures?

Ind AS 28 provides guidance on the application of the equity method for accounting for investments in associates and joint ventures.

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Q.44 Explain the concept of "compound financial instruments" and their accounting treatment under Ind AS.

Compound financial instruments include both liability and equity components. They are usually accounted for by allocating the proceeds between the liability and equity components.

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Q.45 What is the difference between "functional currency" and "presentation currency" as per Ind AS 21?

The functional currency is the currency of the primary economic environment in which an entity operates, while the presentation currency is the currency in which an entity presents its financial statements.

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Q.46 Can you discuss the treatment of non-current assets held for sale under Ind AS 105?

Ind AS 105 outlines the criteria for classifying non-current assets as held for sale and their measurement, presentation, and disclosure.

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Q.47 What is the treatment of hyperinflationary economies under Ind AS 29?

Ind AS 29 provides guidance on the preparation of financial statements when an entity's functional currency is the currency of a hyperinflationary economy.

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Q.48 Explain the concept of "amortized cost" and its relevance in the measurement of financial instruments under Ind AS 109.

Amortized cost is the initial recognition amount adjusted for amortization of premiums or discounts and any impairment losses or reversals. It is used for certain financial assets.

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Q.49 How does Ind AS 115 address contract modifications and their impact on revenue recognition?

Ind AS 115 provides guidance on accounting for contract modifications, considering whether the modification creates a new contract or changes the existing one.

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Q.50 What is the significance of "retrospective application" in the context of Ind AS adoption?

Retrospective application involves applying a new accounting policy to transactions, other events, and conditions as if it had always been applied.

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Q.51 Explain the concept of "off-balance sheet arrangements" and their treatment under Ind AS.

Off-balance sheet arrangements refer to certain types of transactions or relationships that are not recognized on an entity's balance sheet but could potentially impact its financial position.

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Q.52 How does Ind AS 104 address interim financial reporting requirements?

Ind AS 104 provides guidance on the content and presentation of interim financial reports, including the recognition and measurement of assets, liabilities, income, and expenses.

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Q.53 Can you discuss the treatment of contingent assets under Ind AS 37?

Ind AS 37 provides guidance on the recognition and disclosure of contingent assets, which are possible assets arising from past events but are not recognized until the inflow of economic benefits is virtually certain.

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Q.54 What is the treatment of exchange differences arising on translating foreign operations' financial statements under Ind AS 21?

Exchange differences arising from translating the financial statements of foreign operations are recognized in the other comprehensive income and accumulated in a separate component of equity.

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Q.55 How does Ind AS 106 address the determination of whether a contract contains a lease?

Ind AS 106 provides guidance on determining whether a contract contains a lease arrangement and how to separate lease and non-lease components within the contract.

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Q.56 Explain the concept of "dismantling, removal, and restoration" obligations as per Ind AS 16.

Dismantling, removal, and restoration obligations relate to the costs associated with decommissioning assets and restoring the site to its original condition. Ind AS 16 guides the recognition and measurement of these obligations.

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Q.57 What is the treatment of share-based payment transactions involving equity-settled awards under Ind AS 102?

Equity-settled share-based payment transactions are measured at fair value of the equity instruments granted, with the related expense recognized over the vesting period.

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Q.58 Explain the treatment of government loans and government assistance under Ind AS.

Government loans and assistance are accounted for based on their nature and terms. Grants related to revenue are recognized separately, while grants related to assets are deducted from the carrying amount of the related asset.

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Q.59 How does Ind AS 113 address the hierarchy of fair value measurements?

Ind AS 113 provides a fair value hierarchy that categorizes inputs used in valuation techniques into three levels, based on their reliability and observability.

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Q.60 What is the difference between "control" and "joint control" as per Ind AS 112?

Control refers to an entity's power to direct the relevant activities of another entity. Joint control involves shared decision-making over an arrangement that requires the unanimous consent of the parties involved.

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Q.61 Can you discuss the disclosure requirements of Ind AS 108 regarding operating segments?

Ind AS 108 requires entities to disclose information about their operating segments, including revenue, profit, assets, and liabilities, enabling users to assess performance and risks.

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Q.62 Explain the concept of "group accounting" as per Ind AS 110.

Group accounting involves the consolidation of financial statements of a parent and its subsidiaries, presenting them as a single entity.

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Q.63 What is the treatment of provisions under Ind AS 37 when it comes to constructive obligations?

Constructive obligations are recognized as provisions when there is a clear expectation that the entity will meet them.

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Q.64 How does Ind AS 12 address the recognition and measurement of deferred tax assets and liabilities?

Ind AS 12 requires entities to recognize deferred tax assets and liabilities for temporary differences between tax and accounting values, using the enacted tax rates.

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Q.65 Explain the treatment of employee benefits other than post-employment benefits under Ind AS 19.

Employee benefits other than post-employment benefits include short-term benefits, long-term benefits, and termination benefits. They are recognized and measured as per Ind AS 19.

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Q.66 What is the treatment of impairment losses on cash-generating units under Ind AS 36?

Impairment losses on cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to other assets on a pro-rata basis.

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Q.67 How does Ind AS 115 address the timing of revenue recognition for performance obligations satisfied over time?

For performance obligations satisfied over time, Ind AS 115 requires revenue recognition based on the entity's progress toward satisfying the obligation.

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Q.68 Explain the significance of "substance over form" in the context of Ind AS.

"Substance over form" means that the economic substance of a transaction takes precedence over its legal form, guiding the recognition and measurement of transactions.

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Q.69 What is the treatment of restructuring provisions under Ind AS 37?

Ind AS 37 provides guidance on recognizing and measuring restructuring provisions, considering legal or constructive obligations arising from past events.

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Q.70 How does Ind AS 40 address the classification and measurement of investment property?

Ind AS 40 provides guidance on classifying investment property as either cost model or fair value model, based on the entity's business model for managing the property.

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Q.71 Can you explain the concept of "embedded derivatives" and their treatment under Ind AS 109?

Embedded derivatives are components of hybrid financial instruments. Ind AS 109 requires entities to separate and account for embedded derivatives separately if their economic characteristics and risks differ from the host contract.

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Q.72 What is the purpose of the "aggregation of operating segments" in the context of segment reporting under Ind AS 108?

The aggregation of operating segments is allowed when certain criteria are met. It helps in avoiding excessive detail in segment reporting while ensuring meaningful information is presented.

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Q.73 How does Ind AS 33 address the calculation of basic earnings per share (EPS)?

Ind AS 33 requires calculating basic EPS by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

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Q.74 Explain the treatment of financial liabilities measured at amortized cost under Ind AS 109.

Financial liabilities measured at amortized cost are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

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Q.75 What is the role of "discontinued operations" under Ind AS 105?

Discontinued operations refer to components of an entity that are being sold, or are held for sale, representing a major line of business or geographical area. They are presented separately in the financial statements.

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Q.76 Can you discuss the treatment of investment property in the fair value model under Ind AS 40?

Under the fair value model, investment property is initially measured at cost and subsequently at fair value, with changes recognized in profit or loss.

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Q.77 Explain the concept of "retail method" and its application in inventory valuation under Ind AS 2.

The retail method is used for inventory valuation in retail operations. It estimates the cost of inventory based on the relationship between cost and selling price percentages.

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Q.78 What is the treatment of employee benefits other than post-employment benefits under Ind AS 19?

Employee benefits other than post-employment benefits include short-term benefits, compensated absences, and termination benefits. They are recognized when incurred.

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Q.79 How does Ind AS 104 address the disclosure requirements for operating segments in interim financial reports?

Ind AS 104 requires disclosure of information about revenues and results of operating segments in interim financial reports, consistent with the entity's annual segment information.

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Q.80 Explain the concept of "embedded leases" and how they are treated under Ind AS 116.

Embedded leases are lease arrangements within contracts. Ind AS 116 requires entities to identify and account for these embedded leases separately when applying the standard.

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Q.81 What is the treatment of provisions for warranties under Ind AS 37?

Ind AS 37 provides guidance on recognizing and measuring provisions for warranties, considering the entity's obligation to repair or replace goods under warranty.

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Q.82 How does Ind AS 105 address the presentation of non-current assets held for sale in the balance sheet?

Non-current assets held for sale are presented separately in the balance sheet, with their carrying amounts and liabilities directly associated with them.

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Q.83 Explain the concept of "recognition and measurement uncertainty" and its impact on the application of Ind AS.

Recognition and measurement uncertainty refers to situations where there is a degree of uncertainty about the recognition and measurement of certain items. Ind AS provides guidance on addressing such uncertainties.

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Q.84 What is the significance of the "transitional provisions" provided in Ind AS standards?

Transitional provisions outline how an entity should apply Ind AS for the first time, including how to account for past transactions, adjustments, and related disclosures.

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Q.85 How does Ind AS 109 address impairment of financial assets?

Ind AS 109 provides guidance on recognizing, measuring, and recognizing impairment losses for financial assets, considering credit risk, expected credit losses, and significant increases in credit risk.

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Q.86 Can you discuss the treatment of property, plant, and equipment classified as held for sale under Ind AS 105?

Property, plant, and equipment classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. They are not depreciated and are presented separately in the financial statements.

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Q.87 What are Ind AS?

Ind AS are a set of accounting standards adopted by companies in India to bring their financial reporting in line with International Financial Reporting Standards (IFRS).

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Q.88 Why were Ind AS introduced?

Ind AS were introduced to improve transparency, comparability, and quality of financial reporting in India by aligning it with global accounting standards.

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Q.89 Can you explain the difference between Ind AS and Indian Generally Accepted Accounting Principles (GAAP)?

Ind AS are based on the IFRS framework, focusing on principles rather than rules, whereas Indian GAAP often included prescriptive rules.

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Q.90 What is the governing body responsible for formulating and updating Ind AS?

The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) is responsible for formulating and updating Ind AS.

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Q.91 How do Ind AS affect financial statements?

Ind AS can impact the recognition, measurement, presentation, and disclosure of various financial items, leading to changes in financial statements.

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Q.92 What are some key differences between Ind AS 16 and the previous standard (AS 10) on Property, Plant, and Equipment?

Ind AS 16 requires entities to account for property, plant, and equipment at cost model or fair value model, leading to potential differences in valuation and depreciation.

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Q.93 Can you briefly explain the concept of fair value in Ind AS?

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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Q.94 How do Ind AS 109 and Ind AS 113 impact financial instruments accounting?

Ind AS 109 introduces a new classification and measurement framework for financial assets and liabilities, while Ind AS 113 provides guidance on measuring fair value.

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Q.95 What is the treatment of leases under Ind AS 116?

Ind AS 116 requires lessees to recognize most leases on their balance sheets as right-of-use assets and corresponding lease liabilities.

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Q.96 What are the criteria for revenue recognition under Ind AS 115?

Ind AS 115 outlines a five-step model for revenue recognition: Identify the contract, identify the performance obligations, determine the transaction price, allocate the price to obligations, and recognize revenue as obligations are satisfied.

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Q.97 How does Ind AS 19 impact employee benefits accounting?

Ind AS 19 provides guidelines for accounting and disclosure of employee benefits, including defined benefit plans, defined contribution plans, and other post-employment benefits.

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Q.98 What is the objective of Ind AS 38 on Intangible Assets?

Ind AS 38 provides guidance on recognizing, measuring, and disclosing intangible assets acquired through purchase or self-creation.

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Q.99 How do Ind AS address the impairment of assets?

Ind AS, particularly Ind AS 36, provides guidance on testing and recognizing impairment of assets, ensuring that assets are not carried at more than their recoverable amount.

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Q.100 Explain the concept of consolidated financial statements under Ind AS.

Ind AS 110 outlines the principles for preparing consolidated financial statements when an entity controls one or more other entities.

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Q.101 What is the impact of changes in foreign exchange rates as per Ind AS 21?

Ind AS 21 provides guidance on recognizing and accounting for foreign currency transactions and translating foreign operations' financial statements into the entity's presentation currency.

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Q.102 What is the purpose of Ind AS 116, and how does it impact lessees and lessors?

Ind AS 116 aims to improve transparency and comparability in lease accounting. It requires lessees to recognize most leases on their balance sheets, while lessor accounting remains largely unchanged.

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Q.103 Explain the concept of first-time adoption of Ind AS. What challenges can companies face during this process?

First-time adoption involves transitioning from Indian GAAP to Ind AS. Challenges can include data gathering, assessment of differences, and educating stakeholders about changes.

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Q.104 How does Ind AS 32 address financial instruments presentation?

Ind AS 32 provides guidance on classifying financial instruments as financial assets, financial liabilities, or equity instruments, based on the substance of the contract.

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Q.105 What is the objective of Ind AS 107 on Financial Instruments: Disclosures?

Ind AS 107 aims to enhance transparency and understanding of an entity's exposure to financial risks and how it manages those risks through disclosures.

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Q.106 Can you explain the concept of "materiality" as per Ind AS?

Materiality refers to the significance of an item's effect on financial statements. If omitting or misstating it could influence decisions, it's considered material.

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Q.107 How does Ind AS 115 affect revenue recognition for long-term construction contracts?

Ind AS 115 replaces the percentage-of-completion method with a five-step model, providing clearer guidelines for recognizing revenue from long-term contracts.

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Q.108 What is the role of the Conceptual Framework for Financial Reporting in the application of Ind AS?

The Conceptual Framework provides the foundation for developing and applying accounting standards, including addressing uncertainties not covered by specific standards.

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Q.109 How does Ind AS 2 differ from the previous accounting standard (AS 2) on Inventories?

Ind AS 2 outlines specific criteria for inventory valuation, including using the lower of cost or net realizable value and aligning with IFRS requirements.

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Q.110 What are the main components of an entity's financial statements under Ind AS?

The main components include the balance sheet, income statement, statement of changes in equity, cash flow statement, and related notes.

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Q.111 Explain the treatment of contingent liabilities under Ind AS 37.

Ind AS 37 addresses recognition, measurement, and disclosure of contingent liabilities and contingent assets, emphasizing the need for reliable estimates.

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Q.112 What is the importance of fair value hierarchy as per Ind AS 113?

The fair value hierarchy classifies the inputs used in valuation techniques into three levels, helping users understand the reliability of fair value measurements.

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Q.113 How does Ind AS 33 on Earnings per Share differ from the previous standard (AS 20)?

Ind AS 33 aligns with IFRS by emphasizing diluted earnings per share calculations and providing specific guidance on the treatment of potential ordinary shares.

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Q.114 Explain the concept of hedge accounting as per Ind AS 109.

Hedge accounting allows entities to mitigate the impact of volatility in fair values or cash flows of hedged items and hedging instruments, enhancing risk management.

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Q.115 Can you provide an overview of Ind AS 12 on Income Taxes?

Ind AS 12 outlines the recognition, measurement, and presentation of deferred tax assets and liabilities, addressing the temporary differences between tax and accounting values.

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Q.116 What is the role of the Transition Resource Group (TRG) in the context of Ind AS?

The TRG assists in addressing practical implementation issues related to Ind AS, providing guidance to reduce diversity in practice.

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Q.117 How does Ind AS 16 impact the accounting for leasehold improvements and land improvements?

Ind AS 16 covers the treatment of leasehold improvements and land improvements, categorizing them as part of the underlying asset or as separate assets.

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Q.118 Can you explain the difference between Ind AS 101 and Ind AS 1 in the context of financial statement presentation?

Ind AS 101 deals with the first-time adoption of Ind AS, while Ind AS 1 provides the overall framework for presentation of financial statements.

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Q.119 What are the key differences between the recognition of revenue under Ind AS and the previous Indian GAAP?

Ind AS emphasizes the transfer of control as the key criterion for revenue recognition, compared to the Indian GAAP's focus on risks and rewards.

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Q.120 What is the treatment of government grants under Ind AS 20?

Ind AS 20 addresses government grants, ensuring they are recognized systematically over the periods necessary to match them with related costs.

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