Match List - I with List - II:

Choose the correct answer from the options given below:

Correct option is B

The correct match of Ind AS with its relevant accounting concept is:

• (A) Ind AS - 1 → (II) Presentation of Financial Statement
  Ind AS 1 prescribes the basis for the presentation of general-purpose financial statements, to ensure comparability. It outlines components like the balance sheet, income statement, statement of changes in equity, and notes.

• (B) Ind AS - 7 → (I) Cash Flow Statement
  Ind AS 7 deals with the preparation of the cash flow statement, focusing on the inflow and outflow of cash under operating, investing, and financing activities.

• (C) Ind AS - 16 → (IV) Property, Plant and Equipment
  This standard relates to the recognition, measurement, depreciation, and derecognition of tangible fixed assets like buildings, machinery, and land.

• (D) Ind AS - 18 → (III) Revenue Recognition
  Although replaced by Ind AS 115 in recent frameworks, Ind AS 18 previously governed the recognition of revenue from sale of goods, rendering of services, and use of entity assets by others.

Information Booster:

• Ind AS - 1 ensures users get a true and fair view of a company’s financial condition by standardizing the structure and minimum requirements of financial statements.

• Ind AS - 7 provides insights into liquidity, solvency, and financial flexibility, making it crucial for investors and analysts.

• Ind AS - 16 defines clear rules on depreciation methods, component accounting, and impairment reviews of assets.

• Ind AS - 18, though now replaced, was the foundation for understanding timing and measurement of revenue before Ind AS 115 (based on IFRS 15) came into effect.

• These standards promote consistency and comparability across entities and time periods.

• Adoption of Ind AS has aligned Indian companies with global reporting practices, enhancing cross-border investment.