What is IND AS 1? Ans. IND AS 1 is the Indian Accounting Standard that sets out the rules for presentation of financial statements.

1. FAQ on IND AS 1

2. Q.1 What is IND AS 1? Ans. IND AS 1 is the Indian Accounting Standard that sets out the rules for presentation of financial
statements.
Q.2 Who is required to comply with IND AS 1?
Ans. Companies in India that are listed on the stock exchange, as well as unlisted companies with a net worth of Rs. 500 crore or
more, are required to comply with IND AS 1.
Q.3 What are the key requirements of IND AS 1?
Ans. IND AS 1 requires companies to present their financial statements in a certain format, including a statement of financial
position (balance sheet), statement of profit and loss (income statement), statement of changes in equity (if applicable), and
statement of cash flows. The standard also requires companies to disclose certain information in the financial statements,
such as significant accounting policies and key assumptions used in preparing the financial statements.
Q.4 Are there any specific rules for the presentation of financial statements under IND AS 1?
Ans. Yes, IND AS 1 sets out specific rules for the presentation of financial statements. For example, it requires that assets and
liabilities be presented in order of liquidity (i.e., how quickly they can be converted into cash). It also requires that expenses
be presented by function (i.e., the nature of the expense) rather than by the type of expense (e.g., salaries, rent, etc.).
Q.5 When did IND AS 1 become effective?
Ans. IND AS 1 became effective on April 1, 2015, for companies in India that are required to comply with the standard.

3. Q.6 What is the objective of IND AS 1?
Ans. The objective of IND AS 1 is to ensure that financial statements are presented in a way that
provides users with information that is relevant, reliable, comparable, and understandable.
Q.7 How does IND AS 1 differ from the previous accounting standards in India?
Ans. IND AS 1 is based on the International Financial Reporting Standards (IFRS), which are used
in many countries around the world. The previous accounting standards in India were based
on the Indian Generally Accepted Accounting Principles (GAAP), which were not as closely
aligned with the IFRS.
Q.8 What are some of the challenges that companies face when transitioning to IND AS 1?
Ans. Companies may face challenges in areas such as preparing financial statements in the
required format, determining the appropriate accounting policies to use, and identifying the
necessary disclosures to include in the financial statements. Companies may also need to
invest in training for their accounting staff and in upgrading their accounting systems to
comply with IND AS 1.
Q.9 Is there any guidance available for companies on how to implement IND AS 1?
Ans. Yes, the Institute of Chartered Accountants of India (ICAI) has issued guidance on how to
implement IND AS 1, as well as other IND AS standards. Companies may also seek guidance
from their auditors or accounting advisors.
Q.10 What are the benefits of complying with IND AS 1?
Ans. Complying with IND AS 1 can provide companies with several benefits, such as increased
transparency and comparability of financial statements, improved access to capital markets,
and enhanced credibility with investors and other stakeholders.

4. Multiple choice Question Q.1. What is IND AS 1?
a) Indian Accounting Standard for Revenue Recognition
b) Indian Accounting Standard for Financial Instruments
c) Indian Accounting Standard for Presentation of Financial Statements
d) Indian Accounting Standard for Leases
Answer: c) Indian Accounting Standard for Presentation of Financial Statements
Q.2. Who is required to comply with IND AS 1?
a) a) Only listed companies in India b) Unlisted companies with a net worth of Rs. 100 crore or more c)
Companies in India that are listed on the stock exchange and unlisted companies with a net worth
of Rs. 500 crore or more d) All companies in India
Answer: c) Companies in India that are listed on the stock exchange and unlisted companies with a net
worth of Rs. 500 crore or more
Q.3. What are the key requirements of IND AS 1?
a) Rules for recognition of revenue b) Rules for measurement of financial instruments c) Rules for
presentation of financial statements d) Rules for accounting for leases
Answer: c) Rules for presentation of financial statements

5. Q.4. When did IND AS 1 become effective? a) April 1, 2015 b) April 1, 2016 c) April 1, 2017 d) April
1, 2018
Answer: a) April 1, 2015
Q.5. What is the objective of IND AS 1? a) To ensure that financial statements are presented in a
way that provides users with information that is relevant, reliable, comparable, and
understandable b) To ensure that companies recognize revenue in a manner that reflects the
substance of the transaction c) To ensure that companies account for financial instruments at
fair value d) To ensure that companies account for leases in a manner that reflects the
substance of the transaction
Answer: a) To ensure that financial statements are presented in a way that provides users with
information that is relevant, reliable, comparable, and understandable
Q.6. What are some of the challenges that companies face when transitioning to IND AS 1? a)
Preparing financial statements in the required format b) Determining the appropriate
accounting policies to use c) Identifying the necessary disclosures to include in the financial
statements d) All of the above
Answer: d) All of the above

6. Q.7. Is there any guidance available for companies on how to implement IND AS 1? a) No, there is
no guidance available b) Yes, the Institute of Chartered Accountants of India (ICAI) has issued
guidance c) Yes, companies can seek guidance from their auditors or accounting advisors d)
Both b and c
Answer: d) Both b and c
Q.8. What are the benefits of complying with IND AS 1? a) Increased transparency and
comparability of financial statements b) Improved access to capital markets c) Enhanced
credibility with investors and other stakeholders d) All of the above
Answer: d) All of the above
Q.9. What is the minimum set of financial statements required to be presented under IND AS 1?
a) Balance sheet, income statement, cash flow statement b) Balance sheet, income
statement, statement of changes in equity, cash flow statement c) Balance sheet, income
statement, statement of retained earnings, cash flow statement d) Balance sheet, statement
of comprehensive income, statement of changes in equity, cash flow statement
Answer: b) Balance sheet, income statement, statement of changes in equity, cash flow
statement

7. Q.10. Under IND AS 1, what is the requirement for the presentation of non-current assets held for sale and
discontinued operations? a) They should be presented as a separate line item in the balance sheet b) They
should be presented as a separate line item in the income statement c) They should be presented as a
separate category in the statement of cash flows d) They should be disclosed in the notes to the financial
statements
Answer: a) They should be presented as a separate line item in the balance sheet
Q.11. What is the requirement for the presentation of related party transactions under IND AS 1? a) They
should be disclosed in the notes to the financial statements b) They should be presented as a separate line
item in the income statement c) They should be presented as a separate category in the statement of cash
flows d) They should be presented as a separate line item in the balance sheet
Answer: a) They should be disclosed in the notes to the financial statements
Q.12. What is the requirement for the presentation of earnings per share under IND AS 1? a) It should be
presented as a separate line item in the balance sheet b) It should be presented as a separate line item in
the income statement c) It should be presented as a separate category in the statement of cash flows d) It
should be disclosed in the notes to the financial statements
Answer: d) It should be disclosed in the notes to the financial statements
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