Ch 1 · Framework for Preparation of Financial Statements & AS Overview

📘 Core concepts

1. 1Objective: provide information about financial position, performance, cash flows.
2. 2Qualitative characteristics: understandability, relevance, reliability, comparability.
3. 3Elements: assets, liabilities, equity, income, expenses.
4. 4Measurement bases: historical cost, current cost, realisable value, present value.
5. 5ICAI has 32 Accounting Standards; Ind AS converges with IFRS for listed/large entities.