Correct option is C
Indian Generally Accepted Accounting Principles (IGAAP) refer to the framework of accounting standards, rules, and regulations that govern financial reporting in India. The key sources of IGAAP include:
Indian Companies Act, 2013 (A):
- It provides legal requirements for financial reporting, accounting disclosures, and compliance.
- The Act prescribes formats for financial statements and mandates adherence to applicable accounting standards.
Accounting Standards (C):
- These are issued by the Institute of Chartered Accountants of India (ICAI) and govern the preparation and presentation of financial statements.
- They ensure uniformity and comparability in financial reporting.
ICAI’s Pronouncements (D):
- ICAI issues Guidance Notes, Expert Opinions, and Ind AS (Indian Accounting Standards) that help interpret and apply accounting standards effectively.
- ICAI plays a crucial role in ensuring compliance with evolving global accounting practices.
However, notifications issued by the Ministry of Finance (B) are not a direct source of IGAAP. Instead, the Ministry of Corporate Affairs (MCA) oversees accounting regulations.
Information Booster:
- (A) Indian Companies Act, 2013 – This law governs corporate financial reporting and mandates compliance with accounting standards.
- (C) Accounting Standards – Issued by ICAI, these ensure uniformity in financial statements.
- (D) ICAI’s Pronouncements – Includes guidance notes and expert opinions for standard implementation.
Additional Knowledge:
(B) Notifications issued by the Ministry of Finance – While the Ministry of Finance influences economic and fiscal policies, it does not directly issue accounting standards. The Ministry of Corporate Affairs (MCA), not the Finance Ministry, plays a role in regulating corporate financial reporting in India.
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10 Questions
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