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

Case: Sundaram Engineering Ltd, an Ind AS reporter, is reviewing the Ind AS 105 text for its first full year of reporting. Four statements were made by team members: (P) Paragraph 43 on transitional provisions of IFRS 5 is included in Ind AS 105 with full text. (Q) Paragraphs 44-44L on effective date are retained with full text because they are relevant in India. (R) Transitional provisions for Ind AS are placed in Ind AS 101, with paragraph numbers retained in Ind AS 105 for consistency with IFRS 5. (S) Ind AS 105 uses the term 'statement of financial position' and 'authorisation of the financial statements for issue'. Which statement is correct?

Statement R is correct. Transitional provisions are placed in Ind AS 101 rather than in Ind AS 105, and the IFRS 5 paragraph numbers are retained only to maintain consistency. The effective-date paragraphs are also not included, and Ind AS terminology differs from IFRS.

  1. AP
  2. BQ
  3. CRCorrect
  4. DS

Explanation

Paragraph 43 is not included in Ind AS 105 as transitional provisions are in Ind AS 101, though the paragraph number is retained for consistency. Paragraphs 44-44L are likewise not included as not relevant in India, so P and Q are wrong. Ind AS 105 uses 'balance sheet' and 'approval of the financial statements for issue', so S is wrong.

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