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When does AS apply to non-corporate entities according to Ch 1?
ANever — only to corporates
BWhen issued by ICAI (the same standards are issued by ICAI for non-corporates)
COnly when audited by a CA
DOnly if NFRA approves
Answer & Solution
Correct answer: B. When issued by ICAI (the same standards are issued by ICAI for non-corporates)
1. Step 1: Per Ch 1, ICAI issues ASs for non-corporates while MCA issues them for corporates. Both sets are harmonised.
2. Step 2: AS apply to non-corporates via ICAI issuance.
3. Step 3: Hence (B) is correct.
_Source: ICAI BoS CA Inter Paper 1, Ch 1 "Introduction to Accounting Standards"_