Economics · Accounting Principles

Evaluate the correctness of the following accounting statements under Indian GAAP and Ind AS: Statement I: Ind AS 10 (Events after the Reporting Period) requires that dividends proposed after the balance sheet date but before the approval of financial statements should be recognized as a liability in the balance sheet. Statement II: 'Substance over Form' is a key accounting principle implying that the legal form of a transaction may not always represent its true economic reality. Statement III: Accounting Standard 10 (Property, Plant and Equipment) requires that an item of PPE should be recognized as an asset only if it is probable that future economic benefits associated with the item will flow to the enterprise. Statement IV: Under Ind AS 32, a financial instrument is classified as equity only if it includes a contractual obligation to deliver cash or another financial asset to another entity. Statement V: The Accrual basis of accounting is a fundamental accounting assumption as per AS 1. Which combination of statements is correct?