Statements of Standard Accounting Practice and Financial Reporting Standards should be complied with when preparing the final accounts of limited company because__________________.

The Companies Act 1985 demands that they are used

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The auditors will insist they are followed

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The directors are under a legal obligation to ensure they are followed

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They ensure that the accounts present a true and fair view

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Solution

The correct option is D They ensure that the accounts present a true and fair view
Accounting Standard 1 is related to Presentation of Financial Statements. It sets out the overall requirements for financial statements, including how they should be structured.
The objective of IAS 1 is to prescribe the basis for presentation of general purpose financial statements. The financial statements must present fairly the financial position, financial performance and cash flows of an entity. The application of IFRS, with additional disclosure when necessary is presumed to result in financial statements that achieve a fair presentation.

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Similar questions

Q. Who of the following is responsible for ensuring that the Accounts prepared by the company are true and fair and comply with all the statutory requirements

Q. Final Accounts of a company are prepared according to _________ of companies Act,

2013

M K Limited is a computer hardware manufacturing company. While preparing its accounting records it takes into consideration the various accounting principles and maintains transparency. At the end of the accounting year, the company follows the 'Companies Act and Rules, 2013' for the preparation of its Financial Statements. It also prepares its Income Statement and Balance Sheet as per the format provided in Schedule III to the Act. Its Financial Statements depict its true & fair financial position. For the financial year ending March 31, 2017, the accountant of the company is not certain about the presentation of the following items under relevant Major Heads and Sub Heads, if any, in its Balance Sheet:

(i) Securities Premium Reserve

(ii) Calls in Advance

(iii) Stores and Spares

(a) Advise the accountant of the company under which Major Heads and Sub Heads, if any, he should present the above items in the Balance Sheet of the company,

(b) List any two values that the company is observing in the maintenance of its accounting records and preparation of its financial statements.

Q. Final accounts of companies are prepared according to ______of the Companies Act, 2013.

Q. Which of the following may be appointed as the first auditor of the company? (i) A Chartered Accountant in practice (ii) A firm of Chartered Accountants in practice (iii) A limited liability partnership of Chartered Accountants in practice.
The options are ________________.

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