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CA Final · Financial Reporting · Ind AS 12 Income Taxes

Delta Ltd's accountant asks why IAS 12 effective-date paragraphs 89 to 98D and 98F do not contain text in Ind AS 12, and why SIC 25 transitional provisions are absent. Which is the correct explanation?

Effective-date paragraphs 89 to 98D and 98F were not included as irrelevant in India, though their numbers are retained for consistency with IAS 12. SIC 25 transitional provisions are not in Ind AS 12 because Ind AS 101 carries the relevant transitional provisions.

  1. AEffective-date paragraphs were not included as not relevant in the Indian context, with numbers retained; SIC 25 transitional provisions are in Ind AS 101Correct
  2. BBoth sets of provisions were omitted because Ind AS 12 applies only to first-time adopters
  3. CEffective-date paragraphs were replaced by Ind AS 40 and SIC 25 provisions were moved to Ind AS 103
  4. DBoth sets were deleted and their numbers reassigned to new paragraphs

Explanation

The comparison says paragraphs 89 to 98D and 98F were not included as not relevant in the Indian context, but numbers were retained for consistency. SIC 25 transitional provisions were not given in Ind AS 12 because Ind AS 101 includes transitional provisions where appropriate. Moving them to Ind AS 103 is incorrect.

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