Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)

A CMA student compares Ind AS 37 with IAS 37 using the Appendix on comparison. Which combination of observations is entirely correct?

Ind AS 37 uses the terms 'balance sheet' and 'Statement of profit and loss' rather than IAS terminology. Paragraphs 93-99 and 101 on transition and effective date are not given, yet their numbers are retained to stay consistent with IAS 37 numbering.

  1. AInd AS uses 'balance sheet' instead of 'statement of financial position', and paragraphs 93-99 and 101 are retained as numbers but their content on transition and effective date is not givenCorrect
  2. BInd AS uses 'statement of financial position' and has deleted paragraph numbers 93-99 and 101 entirely
  3. CInd AS uses 'balance sheet' and gives full effective date text in paragraphs 93-99 and 101
  4. DInd AS keeps IAS 37 terminology unchanged and omits paragraph 12

Explanation

The comparison notes Ind AS uses 'balance sheet' and 'Statement of profit and loss' instead of IAS terms. Paragraphs 93-99 and 101 on transition and effective date are not given, but the numbers are retained for consistency. So only the first combination is right; the others misstate terminology or paragraph treatment.

Did you get it right without looking?

One question tells you little. A timed set on Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37) shows your real accuracy, how long you take and where you lose marks.

Practise Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)Free diagnostic mock

More Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37) questions