Under Schedule III to the Companies Act 2013:
AIt overrides the Accounting Standards where there is conflict
BIt is optional — entities can choose to adopt or not
CIt prescribes both the format AND the accounting treatment for every line item
DIt prescribes only PRESENTATION and FORMAT — accounting treatment is governed by the notified Accounting / Ind AS standards
Answer & Solution
Correct answer: D. It prescribes only PRESENTATION and FORMAT — accounting treatment is governed by the notified Accounting / Ind AS standards
Schedule III is about FORMAT and presentation only. Accounting treatment (recognition, measurement, derecognition) is the domain of Standards (AS / Ind AS) which Schedule III itself acknowledges. Inclusion of a line item in Schedule III's format does NOT imply the item must be recognised — that decision is governed by Standards.
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