Arrange the following Accounting standard (Ind-AS) according to their number in ascending order:

A. Cash flow statement
B. Income Tax
C. Revenue
D. Property Plant and Equipment
E. Borrowing Cost

Choose the correct answer from the options given below:

Correct option is D

The Indian Accounting Standards (Ind-AS) are a set of accounting standards notified by the Ministry of Corporate Affairs (MCA) and are largely converged with International Financial Reporting Standards (IFRS). These standards are numbered sequentially, and their application ensures uniform financial reporting.

The correct ascending order of the given Ind-AS standards is as follows:

1. Ind-AS 7 - Cash Flow Statement (A):

   • This standard prescribes the presentation of cash flow statements, which classify cash flows into operating, investing, and financing activities.

2. Ind-AS 12 - Income Tax (B):

   • It deals with the accounting treatment for current and deferred tax liabilities and assets.

3. Ind-AS 16 - Property, Plant, and Equipment (D):

   • This standard provides guidance on the recognition, measurement, depreciation, and disposal of tangible fixed assets.

4. Ind-AS 23 - Borrowing Cost (E):

   • It addresses the capitalization of borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets.

5. Ind-AS 115 - Revenue (C):

   • This standard deals with the recognition and measurement of revenue arising from contracts with customers, replacing earlier standards on revenue recognition.

Thus, arranging them in ascending order based on their Ind-AS numbers gives:
A (Ind-AS 7) → B (Ind-AS 12) → D (Ind-AS 16) → E (Ind-AS 23) → C (Ind-AS 115).

Information Booster:

1. Ind-AS 7 (Cash Flow Statement):

   • Helps in assessing liquidity, solvency, and financial flexibility.

   • Essential for investors and stakeholders to understand cash movements.

2. Ind-AS 12 (Income Tax):

   • Covers tax-related financial reporting, including deferred tax implications.

   • Ensures accurate tax expense representation in financial statements.

3. Ind-AS 16 (Property, Plant, and Equipment):

   • Defines rules for capitalization, depreciation, and asset valuation.

   • Provides consistency in reporting fixed assets across industries.

4. Ind-AS 23 (Borrowing Costs):

   • Ensures costs related to loans for asset acquisition are accounted properly.

   • Important for capital-intensive industries like real estate and manufacturing.

5. Ind-AS 115 (Revenue):

   • Provides a five-step model for recognizing revenue.

   • Ensures revenue is recognized when performance obligations are met.​