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CA Final · Financial Reporting · Ind AS 41 Agriculture

A student notices that Ind AS 41 retains paragraph numbers 58 to 63 but contains no text there, even though IAS 41 has content in those paragraphs. According to the comparison with IAS 41 in Appendix 1, what is the position?

Paragraphs 58-63 are left without text in Ind AS 41 because they cover effective date and transition, which are not relevant in the Indian context. Their numbers are retained only to keep paragraph numbering consistent with IAS 41. The omission has nothing to do with bearer plants or exemptions.

  1. AThose paragraphs were omitted because they deal with effective date and transition, which is not relevant in the Indian context, and the numbers are kept for consistency with IAS 41Correct
  2. BThose paragraphs were omitted because they deal with bearer plants, which are covered by Ind AS 16
  3. CThose paragraphs were omitted because Indian farming entities are exempt from disclosing biological assets
  4. DThose paragraphs were omitted because they require measurement at cost, which Ind AS 41 prohibits

Explanation

Appendix 1 explains that paragraphs 58-63 of IAS 41 are not included in Ind AS 41 as they relate to effective date and transition, not relevant in India. The paragraph numbers are retained to stay consistent with IAS 41 numbering. The other options invent reasons not found in the Appendix.

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