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CA Final · Financial Reporting · Ind AS 28 Investments in Associates and Joint Ventures

A trainee notices that Ind AS 28 contains a paragraph 41 marked as 'deleted' and omits the content of paragraphs 45 to 45D of IAS 28, while keeping their paragraph numbers. According to the comparison with IAS 28 in the Ind AS 28 Appendix, which statement is correct?

Paragraphs 45 to 45D relate to effective date and transition, which are not relevant in India, so Ind AS 28 does not include their content. The paragraph numbers are kept to stay consistent with the numbering of IAS 28.

  1. AParagraphs 45 to 45D deal with effective date and transition, which are not relevant in the Indian context, so they are not included but their numbers are retainedCorrect
  2. BParagraphs 45 to 45D were omitted because Ind AS 28 does not apply to joint ventures
  3. CParagraph numbers are retained only to allow future Indian amendments to be inserted at those places
  4. DParagraphs 45 to 45D were omitted because they require fair value measurement of associates, which Ind AS prohibits

Explanation

The Appendix to Ind AS 28 states that paragraphs 45 to 45D have not been included because they relate to effective date and transition, which are not relevant in the Indian context. Their numbers are retained to keep consistency with the paragraph numbers of IAS 28. The same approach applies to paragraph 41, which appears as deleted in IAS 28. The other options give reasons that the Appendix does not state.

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