Economics · Accounting Standards

Based on the regulatory guidelines on accounting standards (AS and Ind AS), evaluate the validity of the following statements for a commercial bank: Statement 1: Under AS 26 (Intangible Assets), the bank can only capitalize costs spent during the Development Phase, while expenses on the Research Phase must be expensed immediately. Statement 2: A tax demand dispute with a 65% probability of loss must be recognized as a Provision because it meets the 'more likely than not' criteria under AS 29. Statement 3: Internally generated 'Brand Value' and 'Employee Morale' can be recorded as assets in the formal Financial Statements. Statement 4: According to AS 1, a change in the valuation method of securities must be disclosed in the Notes to Accounts along with its financial impact. Statement 5: Under Ind AS, a Proposed Dividend should not be recognized as a liability on the Balance Sheet date if the final obligation arises only upon AGM approval. Statement 6: The Historical Cost Principle justifies recording an AI Platform at its development cost, whereas the Money Measurement Concept prohibits recording Employee Morale. Statement 7: The National Financial Reporting Authority (NFRA) recommends Ind AS standards to the MCA for notification under the Companies Act 2013. Which option correctly identifies the validity of these statements?