Match List-I with List-II and select the correct answer using codes given below the lists:
List-I (Accounting Standards) - List-II (Objects)
(A) AS 9 - (i) Revenue Recognition
(B) AS 10 - (ii) Property, Plant and Equipment
(C) AS 16 - (iii) Segment Reporting
(D) AS 17 - (iv) Borrowing costs

Question

Match List-I with List-II and select the correct answer using codes given below the lists: 
List-I (Accounting Standards) -  List-II (Objects)
(A) AS 9 - (i) Revenue Recognition
(B) AS 10 - (ii) Property, Plant and Equipment
(C) AS 16 -  (iii) Segment Reporting
(D) AS 17 - (iv) Borrowing costs

Accepted Answer

The correct option is 3:

The correct option, (i), (ii), (iv), (iii), provides the only accurate pairing of the Accounting Standards (AS) in List-I with their specified objectives in List-II. These standards are foundational to corporate financial reporting in India, ensuring uniformity and transparency. Specifically, (A) AS 9 deals with **Revenue Recognition** (i), providing the principles for when and how revenue should be recognized in the profit and loss account. (B) AS 10 is dedicated to **Property, Plant and Equipment** (ii), covering the accounting treatment for all tangible fixed assets. (C) AS 16 prescribes the capitalization and expensing treatment of **Borrowing Costs** (iv). Finally, (D) AS 17 mandates the disclosure of financial information for different **Segment Reporting** (iii) to help users assess the risks and returns of various business divisions.

The incorrect option is 1:

This option, (i), (ii), (iii), (iv), fails because of the interchange between C and D. Although AS 9 (Revenue Recognition) and AS 10 (Property, Plant and Equipment) are correctly matched, the standard for Segment Reporting is AS 17 (iii), and the standard for Borrowing Costs is AS 16 (iv). The option incorrectly links AS 16 to Segment Reporting (iii) and AS 17 to Borrowing Costs (iv). This swapping of C and D makes the overall sequence incorrect according to the established framework of Indian Accounting Standards.

The incorrect option is 2:

This option, (i), (iii), (ii), (iv), contains multiple errors. While AS 9 is correctly matched with Revenue Recognition (i), AS 10 is incorrectly matched with Segment Reporting (iii). AS 10 is the standard for Property, Plant and Equipment (ii). Furthermore, AS 16 is incorrectly matched with Property, Plant and Equipment (ii), which is the subject of AS 10. The only correct part of the B and C pairings in this option is D: AS 17 (Segment Reporting). Due to the fundamental misalignment of the main standards AS 10 and AS 16 with their respective objects, this option is invalid.

The incorrect option is 4:

This option, (i), (iii), (iv), (ii), also presents significant mismatches for the core standards. While AS 9 (Revenue Recognition) and AS 16 (Borrowing Costs) are correctly matched, AS 10 is incorrectly paired with Segment Reporting (iii). The correct subject for AS 10 is Property, Plant and Equipment (ii). Consequently, AS 17 is incorrectly paired with Property, Plant and Equipment (ii), when its actual object is Segment Reporting (iii). Because a single incorrect match invalidates the entire coded sequence, this option cannot be selected as the right answer.