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CA Final · Financial Reporting · Ind AS 103 Business Combinations

A company transitioning to Ind AS for the first time had earlier acquired a business under previous GAAP. Its finance head wants to know where the transitional provisions on how Ind AS 103 applies to such past business combinations are found. According to the comparison with IFRS 3 given with Ind AS 103, which is correct?

The transitional provisions are in Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 103 does not reproduce IFRS 3's transitional provisions, because all Ind AS transitional provisions are consolidated in Ind AS 101. The paragraph numbers 64-64J are retained in Ind AS 103 only to keep numbering consistent.

  1. AThey are in Ind AS 103 itself, as the IFRS 3 transitional paragraphs were retained
  2. BThey are in Ind AS 101, because Ind AS 103 does not carry IFRS 3's transitional provisionsCorrect
  3. CThey are in Appendix C to Ind AS 103 on common control combinations
  4. DThey are in paragraphs 64-64J of Ind AS 103, which deal with effective dates

Explanation

The comparison states that IFRS 3's transitional provisions have not been given in Ind AS 103, since all transitional provisions for Ind ASs are included in Ind AS 101, First-time Adoption. Paragraphs 64-64J are not included either, and only their numbers are retained for consistency. Appendix C deals with common control combinations, not transition.

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