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CA Final · Financial Reporting · Ind AS 103 Business Combinations

Ganga Foods Ltd's auditor reviews its Ind AS financial statements and notes that IFRS 3 paragraphs related to effective date and transition are not in Ind AS 103. Which explanation matches the comparison appendix of Ind AS 103?

Transitional provisions are dealt with in Ind AS 101 First-time Adoption of Indian Accounting Standards, wherever considered appropriate, so Ind AS 103 does not repeat them. Effective-date paragraphs were also omitted as not relevant in India, though paragraph numbers are retained for consistency with IFRS 3.

  1. ATransitional provisions are given in Ind AS 101 First-time Adoption, where considered appropriate, rather than in Ind AS 103Correct
  2. BTransitional provisions are omitted because Ind AS 103 applies only to new entities
  3. CTransitional provisions are available only in the Companies Act, 2013 and not in any Ind AS
  4. DTransitional provisions are retained in Ind AS 103 but marked as deleted

Explanation

The appendix states that transitional provisions of IFRS 3 are not given in Ind AS 103 because all transitional provisions of Ind ASs, wherever considered appropriate, are included in Ind AS 101. Effective-date paragraphs were not included as not relevant in the Indian context, though numbers are retained for consistency. Hence the other options misstate this.

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