CA Final · Financial Reporting · Ind AS 28 Investments in Associates and Joint Ventures
A student notices that Ind AS 28 shows paragraph 41 as 'deleted' and does not reproduce paragraphs 45 to 45D, yet the numbering continues unbroken. What is the reason given in the Comparison with IAS 28 for the omission of paragraphs 45 to 45D?
Paragraphs 45 to 45D of IAS 28 deal with effective date and transition, which are not relevant in the Indian context, so they are not included in Ind AS 28. Their paragraph numbers are retained, as with deleted paragraph 41, to keep numbering consistent with IAS 28.
- AThey deal with effective date and transition, which are not relevant in the Indian context, and the paragraph numbers are retained for consistency with IAS 28Correct
- BThey were replaced by Ind AS 103, which now governs the investor's share of net assets
- CThey deal with the equity method for joint ventures, which is now covered only by Ind AS 111
- DThey apply only to entities that have not yet adopted Ind AS and are therefore deferred indefinitely
Explanation
The Comparison with IAS 28 states that paragraphs 45 to 45D relate to effective date and transition, which are not relevant in the Indian context. The paragraph numbers are retained to stay consistent with IAS 28 numbering, and the same approach is used for deleted paragraph 41. The other options give reasons that the text does not state.
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