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CA Final · Financial Reporting · Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance

A reviewer notes that paragraphs 40 and 41-48 of IAS 20 do not appear in Ind AS 20. Which statement correctly explains the position per the comparison with IAS 20?

IAS 20 paragraph 40 on transitional provisions is not in Ind AS 20 because the relevant transitional provisions are included in Ind AS 101. Paragraphs 41-48 on effective date are omitted because they are not relevant in the Indian context.

  1. AParagraph 40 on transitional provisions is omitted because relevant transitional provisions are in Ind AS 101, and paragraphs 41-48 on effective date are omitted as not relevant in the Indian contextCorrect
  2. BParagraph 40 is omitted because transitional provisions do not apply in India, and paragraphs 41-48 are placed in Ind AS 8
  3. CBoth are omitted because Ind AS 20 applies only to grants received after first adoption
  4. DParagraph 40 is omitted as not relevant, while paragraphs 41-48 are covered in Ind AS 101

Explanation

The comparison appendix states that IAS 20 paragraph 40 is not included because relevant transitional provisions are in Ind AS 101, and paragraphs 41-48 on effective date are not included as they are not relevant in the Indian context. Option D reverses the two reasons.

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