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CA Final · Financial Reporting · Financial Instruments: Disclosures

A trainee compares Ind AS 107 with IFRS 7 for Narmada Steel Ltd. Which statement about paragraph numbering and omitted IFRS 7 paragraphs is correct according to the Appendix 1 comparison?

Paragraphs 43-44BB on effective date and transition are not given in Ind AS 107, yet their numbers are retained to stay consistent with IFRS 7 numbering. Paragraphs 42I-42S are also excluded, and paragraphs deleted in IFRS 7 keep their numbers rather than being renumbered.

  1. AParagraphs 42I-42S of IFRS 7 on initial application of IFRS 9 are included in Ind AS 107 because IFRS 9 equals Ind AS 109
  2. BParagraphs 43-44BB on effective date and transition are not given in Ind AS 107, but the paragraph numbers are retained to stay consistent with IFRS 7Correct
  3. CParagraphs deleted in IFRS 7 are renumbered in Ind AS 107 so that no gaps remain
  4. DParagraphs 43-44BB are given in full in Ind AS 107 because they are relevant in the Indian context

Explanation

Appendix 1 says paragraphs 42I-42S are not included as they relate to initial application of IFRS 9 and are not relevant in Indian context. Paragraphs 43-44BB are not given, but numbers are retained for consistency. Paragraph numbers of deleted IFRS 7 paragraphs are likewise retained, not renumbered.

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