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CA Final · Financial Reporting · Ind AS 36 Impairment of Assets

A reviewer at Kaveri Power Ltd. notices that the Ind AS 36 text has paragraphs 25 to 27 shown without content, while IAS 36 contains them. The company asks why. Which explanation matches the stated comparison with IAS 36?

Paragraphs 25-27 are deleted in Ind AS 36 as a consequence of Ind AS 113 Fair Value Measurement. The paragraph numbers are retained so that numbering stays consistent with IAS 36, which is why they appear without content.

  1. AThey were deleted because impairment of goodwill is not allowed in India.
  2. BThey were deleted as a consequence of Ind AS 113 Fair Value Measurement, and the numbering is retained for consistency with IAS 36.Correct
  3. CThey were deleted because transitional provisions are given in Ind AS 36 itself.
  4. DThey were deleted because Ind AS 36 does not apply to property, plant and equipment.

Explanation

The comparison states that paragraphs 25-27 and paragraph 5(b) are deleted as a consequence of Ind AS 113, with numbering retained to match IAS 36. The goodwill and PPE options have no basis. Transitional provisions are in Ind AS 101, not in Ind AS 36.

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