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CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

A finance manager at Omega Ltd says that the Ind AS 111 appendix comparing it with IFRS 11 is binding on preparers. Which statement is correct?

The appendix comparing Ind AS 111 with IFRS 11 is not part of the Standard. Its purpose is only to bring out the major differences, if any, between the two, so it is explanatory and not a binding requirement on preparers.

  1. AThe appendix is part of the standard and its differences must be applied as a mandatory requirement
  2. BThe appendix is not part of the Standard and only brings out the major differences, if any, between Ind AS 111 and IFRS 11Correct
  3. CThe appendix replaces the transitional provisions of Ind AS 111
  4. DThe appendix applies only to listed companies

Explanation

Appendix 1 states that it is not part of the Indian Accounting Standard and its purpose is only to bring out the major differences, if any, between Ind AS 111 and IFRS 11. Hence it is not a mandatory requirement. Option A is wrong for that reason. Transitional provisions are dealt with in Ind AS 101, so option C is also wrong.

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