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CA Final · Financial Reporting · Financial Instruments: Disclosures

Bharat Infra Ltd, an Indian company, asks why Ind AS 107 retains paragraph numbers such as 12-12A, 13 and 16 even though they carry no requirements. Which statement matches Appendix 1 of Ind AS 107?

Appendix 1 to Ind AS 107 says that paragraphs shown as 'Deleted' in IFRS 7, such as 12-12A, 13 and 16, keep their numbers in Ind AS 107. The purpose is to maintain consistency with the IFRS 7 paragraph numbering, not to add any disclosure requirement.

  1. AThe numbers are retained to maintain consistency with the paragraph numbers of IFRS 7, where those paragraphs appear as 'Deleted'Correct
  2. BThe numbers are retained because the paragraphs apply only to listed companies
  3. CThe numbers are retained because they contain optional disclosures for small entities
  4. DThe numbers are retained because they will be notified later with separate transition rules

Explanation

Appendix 1 lists paragraph numbers that appear as 'Deleted' in IFRS 7, including 12-12A, 13 and 16. They are retained in Ind AS 107 to maintain consistency with IFRS 7 paragraph numbering. The other options invent reasons that the text does not give.

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