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

A student comparing Ind AS 36 with IAS 36 notes that paragraph 2(f) of the Ind AS is deleted, although the paragraph number is retained. What is the stated reason for this deletion?

Paragraph 2(f) is deleted because Ind AS 40 requires the cost model for investment property, so the fair value model scope item in IAS 36 is not relevant. The paragraph number is kept for consistency with IAS 36, and paragraph 5 is modified accordingly.

  1. AInd AS 40 requires the cost model, so investment property at fair value no longer falls under this scope itemCorrect
  2. BInvestment property is excluded from all Ind AS impairment testing
  3. CInd AS 113 now covers all fair value measurement of investment property
  4. DTransitional provisions have been moved to Ind AS 101

Explanation

The Ind AS 36 comparison with IAS 36 says paragraph 2(f) is deleted because Ind AS 40 requires the cost model. The number is retained to stay consistent with IAS 36. Paragraph 5 is also modified to remove the reference to fair value measurement of investment property. The Ind AS 101 option relates to the transitional provisions, a different deletion.

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