CA FINAL BY JAANVI THAKUR

IND AS PUZZLERS: TEST YOUR ACCOUNTING ACUMEN

(ICAI MODULE – 1)
(Intro to Ind AS, Conceptual Framework, IND AS 1, 34, 7, 8, 10, 113, 115)

Note- Answers at the end of the document

Introduction to Ind AS

1. Ind AS are the IFRS converged standards issued by the Central Government of India
through-

a) MCA
b) ICAI
c) SEBI
d) NFRA

2. Ind AS are accompanied by mandatory _______ that is integral part of Ind AS to assist
entities in applying their requirements.

a) Standards
b) Amendments
c) Guidance
d) Notes

Conceptual Framework

3. Under Ind AS Conceptual Framework, _________ representation means financial

information must be complete, neutral, free from error, relevant, understandable, and
complete.

a) Relevant
b) Faithful
c) Fair
d) Useful

4. As per conceptual framework, a _________ depiction is being non-bias in the selection

or presentation of financial information.

a) Free from error

b) Complete
c) Neutral
d) Accurate

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5. ___________ is the present economic resource controlled by the entity as a result of

past events.

a) Liability
b) Contingent Liability
c) Provision
d) Asset

6. The asset held primarily for the purpose of trading is known as ______.

a) Contingent Asset
b) Current Asset
c) Deferred Asset
d) Fixed Asset

7. As per conceptual framework, _________ are present obligations of the entity to

transfer economic resources.

a) Assets
b) Provisions
c) Liabilities
d) Contingent Liabilities

Ind AS 1

8. As per Ind AS 1, if compliance with a requirement in an Ind AS would be so misleading

that it would conflict with the __________ of financial statements set out in the
Conceptual Framework, the entity shall depart from that requirement if the relevant
regulatory framework requires, or otherwise does not prohibit, such a departure.

a) Purpose
b) Clarity
c) Fairness
d) Objective

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9. Ind AS 1 state that applying a requirement is ___________ when the entity cannot
apply it after making every reasonable effort to do so.

a) Impossible
b) Impracticable
c) Improper
d) Immoral

10. Financial statements should be prepared on a __________ basis unless management

either intends to liquidate the entity or to cease trading.

a) Liquidation
b) Going Concern
c) Interim
d) Monthly

11. An entity whose financial statements comply with Ind AS shall make an __________
and unreserved statement of such compliance in the notes.

a) Explicit
b) Original
c) Unqualified
d) Certified

12. The exercise of prudence means that assets and income are not overstated, and
liabilities and __________ are not understated.

a) Contingent Assets
b) Assets
c) Expenses
d) Taxes

Ind AS 34

13. Objective of Ind AS 34 is to prescribe the principles for recognition and measurement in
complete or _______________ financial statements for an interim period.

a) Special Purpose
b) Interim
c) Condensed
d) Annual
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Ind AS 7

14. ___________ are short-term, highly liquid investments that are readily convertible to
known amounts of cash.

a) Cash
b) Marketable Securities
c) Cash Equivalents
d) Fixed Deposits

15. Negative cash flow from _________ denotes that company is unable to generate cash
from its main business activity.

a) Investing
b) Financing
c) Operations
d) Cash and Cash Equivalents

16. Cash flows arising from _________ paid or received in the case of a financial institution
should be classified as cash flows from operating activities.

a) Taxes
b) Dividend
c) Interest
d) Rent

17. Cash flows arising from taxes on income shall be ________ disclosed under cash flows
from operating activities unless they can be specifically identified with financing and
investing activities.

a) Combined and
b) Separately
c) Not
d) None of the above

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Ind AS 8

18. Prior period errors include the effects of mathematical mistakes, mistakes in applying
accounting policies, oversights, or misinterpretations of facts, and ____________.

a) Rectifications
b) Adjustments
c) Changes
d) Frauds

19. A change in accounting policy is applied __________.

a) Prospectively
b) Retrospectively
c) Ignored
d) After Audit

Ind AS 10

20. An entity shall not ___________ the amounts recognised in its financial statements to
reflect non-adjusting events occurred after the reporting period.

a) See
b) Ignore
c) Track
d) Adjust

21. Even if the ___________ is declared after the reporting period but before the financial
statements are approved for issue, it is disclosed in the notes to financial statements.

a) Interest
b) Taxes
c) Dividend
d) Financials

Ind AS 113

22. In the absence of observable inputs, _________ techniques such as income approach
or market approach may be used.

a) Audit
b) Valuation
c) Recording
d) Management
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23. Ind AS 113 provides guidance on how to determine fair _______ for financial reporting
purposes.

a) Price
b) Value
c) Transaction Cost
d) Transportation Cost

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

a) Hold
b) Mortgage
c) Transfer
d) Sell

25. Ind AS 113 establishes a fair value _________ that categorizes inputs into three levels
based on their reliability and observability.

a) Hierarchy
b) Tree
c) Chain
d) Unit

26. _____ two are observable inputs other than quoted prices in active markets.

a) Hierarchy
b) Floor
c) Level
d) Grade

27. Transaction costs do not include _________ costs.

a) Brokerage
b) Underwriting
c) Transport
d) None of the above

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Ind AS 115

28. ___________ is an entity's obligation to transfer goods or services to a customer for

which the consideration is received or due from the customer.

a) Provision
b) Retention Money
c) Contract Asset
d) Contract Liability

29. The entity shall not recognise _________ when it transfers products to customers but
shall recognise those amounts received (or receivable) as a refund liability.

a) Revenue
b) Expense
c) Refund Liability
d) Contract Asset

30. A _____________ obligation is a distinct promise to transfer a good or service to a

customer as part of a contract.

a) Contract
b) Non-Performance
c) Performance
d) Current

31. Entities have to consider variable ___________, such as discounts, rebates, and
performance bonuses, when determining the transaction price.

a) Payments
b) Consideration
c) Revenue
d) Expenses

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Answers

1. a) 17. b)
2. c) 18. d)
3. b) 19. b)
4. c) 20. d)
5. d) 21. c)
6. b) 22. b)
7. c) 23. b)
8. d) 24. c)
9. b) 25. a)
10. b) 26. c)
11. a) 27. c)
12. c) 28. d)
13. c) 29. a)
14. c) 30. c)
15. c) 31. b)
16. c)

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