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CA Final · Financial Reporting · Ind AS 19 Employee Benefits

Aarav Infra Ltd is comparing its Ind AS 19 requirements with IAS 19 for a gratuity plan in India. Which statement about Appendix 1 comparison matters is correct?

Paragraphs 172 to 177 of IAS 19, dealing with transition and effective date, are not included in Ind AS 19 because they are not relevant in the Indian context, yet their paragraph numbers are retained to stay consistent with IAS 19 numbering.

  1. AParagraphs 172 to 177 of IAS 19 on transition and effective date are not included in Ind AS 19, though the paragraph numbers are retainedCorrect
  2. BInd AS 19 requires corporate bond yields for rupee obligations while IAS 19 requires government bonds
  3. CRemeasurements of other long-term benefits go to OCI under Ind AS 19
  4. DParagraph numbers of IAS 19 are not retained in Ind AS 19

Explanation

Appendix 1 states that paragraphs 172 to 177 of IAS 19 relating to transition and effective date are not included as they are not relevant in the Indian context, but the paragraph numbers are retained for consistency. Option B reverses the discount rate difference, and option C contradicts the simplified method.

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