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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

A student states four reasons why paragraph numbers in Ind AS 105 such as 43 and 44-44L appear to be missing text. Which statement is consistent with Appendix 1 of Ind AS 105?

Transitional provisions of paragraph 43 are not included because they are covered in Ind AS 101, and effective date paragraphs 44-44L are omitted as not relevant in the Indian context. The paragraph numbers are retained to stay consistent with IFRS 5 numbering.

  1. AParagraph 43 transitional provisions are included in Ind AS 105 itself, while 44-44L are deleted as redundant
  2. BParagraph 43 is omitted because transitional provisions are covered in Ind AS 101, and 44-44L effective date paragraphs are omitted as not relevant in the Indian context, with numbers retained for consistencyCorrect
  3. CParagraphs 43 and 44-44L are omitted because they conflict with Ind AS 1 and the numbers have been reassigned
  4. DParagraphs 43 and 44-44L are omitted because the Companies Act prohibits transitional relief

Explanation

Appendix 1 states paragraph 43 on transition is not included since transitional provisions are placed in Ind AS 101, and paragraphs 44-44L on effective date are not relevant in India. Numbers are retained to stay consistent with IFRS 5. The other options invent reasons.

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