Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): Indian Accounting Standards contain some 'carve outs' and for convergence with IFRS with some changes applied in India Reason (R): Financial statements prepared in India with Indian Accounting Standards will not be IFRS compliant In the light of the above two statements, choose the correct option 1. Both A) and R) are true and R) is the correct explanation of A)2. Both A) and R) are true but R) is NOT the correct explanation of A)3. A) is true but R) is false4. A) is false but R) is true

• A. 1
• B. 2
• C. 3
• D. 4