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

At Vindhya Group Ltd, the board has delegated resource allocation and performance assessment of its divisions to a committee of three executive directors who meet monthly. The CEO only chairs the committee and has no separate authority. Who is the chief operating decision maker under Ind AS 108?

The committee of three executive directors is the CODM. Ind AS 108 treats the CODM as a function of allocating resources to and assessing the performance of operating segments, and it may be a group of executive directors rather than a person with a specific title.

  1. AThe CEO alone, because the CODM must be the CEO
  2. BThe committee of three executive directors, because the CODM is a function that allocates resources and assesses performanceCorrect
  3. CThe statutory auditor, because it assesses performance
  4. DThe Company Secretary, because the secretary records the decisions

Explanation

Ind AS 108 describes the CODM as a function, not necessarily a manager with a specific title. The function is to allocate resources to and assess the performance of the operating segments. It is often the CEO or COO but may be a group of executive directors. The committee performs that function, so it is the CODM.

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