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CA Final · Financial Reporting · Ind AS 103 Business Combinations

A student compares Ind AS 103 with IFRS 3 for the scope of business combinations. Which statement is correct?

IFRS 3 excludes common control business combinations, whereas Ind AS 103 provides guidance on them in Appendix C, which is why paragraph 2 was modified and paragraph 2B added. Paragraphs B1 to B4 of IFRS 3 are deleted in Ind AS 103.

  1. ABoth Standards exclude business combinations of entities under common control, and Ind AS 103 gives no guidance on them
  2. BIFRS 3 excludes common control combinations; Ind AS 103 covers them through guidance in its Appendix C, with paragraph 2 modified and paragraph 2B addedCorrect
  3. CInd AS 103 excludes joint arrangements and common control combinations, while IFRS 3 includes both
  4. DInd AS 103 deletes paragraphs B1 to B4 of IFRS 3 and therefore excludes all acquisitions under the acquisition method

Explanation

IFRS 3 excludes business combinations of entities under common control from its scope. Ind AS 103 gives guidance on them in Appendix C, so paragraph 2 was modified and paragraph 2B added. Paragraphs B1-B4 of IFRS 3 were deleted, but that does not remove the acquisition method.

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