Accounting Standards are formulated by a Planning Commission b Institute of Chartered Accountants of India c The Companies Act, 1956 d Ministry of Finance, GOI
Question
Accounting Standards are formulated by
a Planning Commission
b Institute of Chartered Accountants of India
c The Companies Act, 1956
d Ministry of Finance, GOI
Solution
Accounting Standards are formulated by:
a Planning Commission
b Institute of Chartered Accountants of India
c The Companies Act, 1956
d Ministry of Finance, GOI
Step 1: Read the options provided for the formulation of Accounting Standards.
Step 2: Analyze each option to determine which one is responsible for formulating Accounting Standards.
Step 3: Option a, the Planning Commission, is not typically responsible for formulating Accounting Standards. Eliminate this option.
Step 4: Option b, the Institute of Chartered Accountants of India, is a professional body that plays a significant role in formulating Accounting Standards. Keep this option for further consideration.
Step 5: Option c, the Companies Act, 1956, is a legislation that governs the functioning of companies in India. While it may have provisions related to accounting, it is not solely responsible for formulating Accounting Standards. Eliminate this option.
Step 6: Option d, the Ministry of Finance, GOI (Government of India), is a government department that oversees financial matters in the country. It has the authority to formulate Accounting Standards. Keep this option for further consideration.
Step 7: Review the remaining options, b and d.
Step 8: Option b, the Institute of Chartered Accountants of India, is a professional body that has the expertise and authority to formulate Accounting Standards. This option is likely to be correct.
Step 9: Option d, the Ministry of Finance, GOI, also has the authority to formulate Accounting Standards. This option is also a possibility.
Step 10: Based on the analysis, the correct answer is either option b, the Institute of Chartered Accountants of India, or option d, the Ministry of Finance, GOI.
Step 11: If you have additional information or context, consider using it to make a final determination between options b and d.
Step 12: Provide the answer based on the analysis conducted.
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