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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Dhanvi Steels Ltd's accountant notes that the accounting principle in the Appendix on interim financial reporting and impairment (goodwill) resolves a conflict between Ind AS 34 and Ind AS 36. He proposes to apply the same principle by analogy to a conflict between Ind AS 34 and another standard on a different item. What does Ind AS 34 provide?

The principle must not be extended by analogy. The Ind AS 34 Appendix on interim reporting and impairment states that an entity shall not apply it to other areas of potential conflict between Ind AS 34 and other Indian Accounting Standards, so Dhanvi Steels cannot do so.

  1. AThe principle may be extended by analogy to all other conflicts
  2. BThe principle may be extended only to items in Ind AS 36
  3. CThe principle may be extended if auditors agree
  4. DAn entity shall not extend this principle by analogy to other areas of potential conflict between Ind AS 34 and other Ind ASCorrect

Explanation

The Appendix states that an entity shall not extend this accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting Standards. The other options permit extension, which is prohibited.

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