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CMA Final · Corporate Financial Reporting · Operating Segments (Ind AS 108)

Anvika Industries Ltd's board has appointed a committee of three executive directors who together allocate resources to the company's business units and assess their performance. The company has no single person titled CEO or COO who does this. Under Ind AS 108, how should the chief operating decision maker (CODM) be identified?

The committee of three executive directors is the CODM. Ind AS 108 treats the CODM as a function of allocating resources and assessing segment performance, not a specific title, and it explicitly allows a group of executive directors to perform that function.

  1. AThe committee of three executive directors, because CODM is a function and may be a group of executive directorsCorrect
  2. BThe Chairman of the board, because the CODM must be a single individual with a senior title
  3. CNo CODM exists, so the entity cannot report any operating segments
  4. DThe statutory auditor, because it assesses the performance of business units

Explanation

Paragraph 7 says the CODM identifies a function, not necessarily a manager with a specific title. The function is to allocate resources to and assess the performance of operating segments. It may be a group of executive directors, so the committee is the CODM. Requiring a single titled person is wrong.

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