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

Aarav Textiles Ltd. holds investment property measured under Ind AS 40 and is evaluating whether the fair value model exception in IFRS 5 paragraph 5(d) applies to its measurement on classification as held for sale. What is the position under Ind AS 105?

The IFRS 5 paragraph 5(d) exclusion is deleted in Ind AS 105 because Ind AS 40 prohibits the fair value model. Hence no exclusion exists for investment property at fair value, and the measurement requirements are not carved out on that basis.

  1. AThe paragraph applies, so investment property at fair value is excluded from the measurement requirements
  2. BThe paragraph applies only if the investment property is held by a subsidiary
  3. CThe paragraph is deleted because Ind AS 40 prohibits the fair value model, so no such exclusion existsCorrect
  4. DThe paragraph is retained but applies only to leased investment property

Explanation

Paragraph 5(d) of IFRS 5 deals with assets accounted for under the fair value model in IAS 40. Since Ind AS 40 prohibits the fair value model, this paragraph is deleted in Ind AS 105. So the exclusion has no application in India.

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