Raman & Co., a partnership firm, is preparing its financial statements. The accountant says that since the firm is not a company, Accounting…

CA Intermediate · Advanced Accounting · MTP · September 2026
Raman & Co., a partnership firm, is preparing its financial statements. The accountant says that since the firm is not a company, Accounting Standards are not relevant. Which statement is correct?
(A) (i) Accounting Standards are relevant only to listed companies.
(B) (ii) Non-corporate entities must apply only Ind AS.
(C) (iii) Accounting Standards for non-corporate entities are issued by ICAI and are relevant subject to applicability/exemptions.
(D) (iv) Partnership firms are prohibited from following Accounting Standards.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

(iii) Accounting Standards for non-corporate entities are issued by ICAI and are relevant subject to applicability/exemptions.

Topics: Preparation of Financial Statements

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic