Skip to content

CA Final · Financial Reporting · Ind AS 12 Income Taxes

A trainee preparing notes on Ind AS 12 observes that paragraph numbers jump, for example paragraphs 89 to 98D and 98F carry no text, and paragraph 3 appears as 'Deleted'. What is the correct explanation for the retained numbering?

The gaps exist because IAS 12's effective date paragraphs (89 to 98D and 98F) are not relevant in India and are not included, and Ind AS 12 retains the paragraph numbers, including those marked Deleted, to maintain consistency with IAS 12 numbering.

  1. AThe paragraphs are reserved for future amendments by the ICAI
  2. BParagraphs 89 to 98D and 98F of IAS 12 relate to effective date and are not relevant in the Indian context, and paragraph numbers are retained to stay consistent with IAS 12 numberingCorrect
  3. CThe paragraphs were withdrawn because they contradict the Companies Act
  4. DThe numbering gaps indicate paragraphs applicable only to first-time adopters

Explanation

Paragraphs 89 to 98D and 98F of IAS 12 deal with effective date and are not included in Ind AS 12 as they are not relevant in the Indian context. Paragraph numbers, including those shown as 'Deleted' such as paragraph 3, are retained so that numbering stays consistent with IAS 12. They are not reserved, withdrawn for legal conflict, or specific to first-time adopters.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 12 Income Taxes shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 12 Income TaxesFree diagnostic mock

More Ind AS 12 Income Taxes questions