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CA Final · Financial Reporting · Financial Instruments: Disclosures

A CA is preparing a comparison note on Ind AS 107 versus IFRS 7 for the audit committee of Kaveri Pharma Ltd. Which of the following is a difference that the Ind AS 107 comparison appendix actually records?

Ind AS 107 does not include IFRS 7 paragraphs 42I-42S, which deal with initial application of IFRS 9, because they are not relevant in the Indian context. The other statements are wrong: transition sits in Ind AS 101, and deleted paragraph numbers are retained for consistency.

  1. AInd AS 107 retains the IFRS 7 requirement for a separate income statement with a description of gains and losses
  2. BInd AS 107 omits the IFRS 7 paragraphs on initial application of IFRS 9 (paragraphs 42I-42S) because they are not relevant in the Indian contextCorrect
  3. CInd AS 107 contains its own transitional provisions that differ from Ind AS 101
  4. DInd AS 107 renumbers all paragraphs so that deleted IFRS 7 paragraph numbers are reused for new content

Explanation

The appendix states that IFRS 7 paragraphs 42I-42S, relating to initial application of IFRS 9, are not included in Ind AS 107 as they are not relevant in the Indian context. The separate income statement disclosure was deleted, not retained. Transitional provisions sit in Ind AS 101, and paragraph numbers are retained, not reused.

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