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

Ganga Logistics Ltd applies the Appendix A principle on interim reporting and goodwill impairment. Its accountant proposes extending the same principle by analogy to the reversal of other conflicts, such as an interim accounting estimate for another area where Ind AS 34 and another Ind AS appear to conflict. What does Ind AS 34 Appendix A say about this?

The principle cannot be extended. Appendix A states that an entity shall not extend this accounting principle, which concerns goodwill impairment, by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting Standards.

  1. AIt may be extended freely to all potential conflicts with other Ind AS
  2. BIt may be extended only to conflicts with Ind AS 2
  3. CIt may be extended only if the auditor approves
  4. DAn entity shall not extend this accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting StandardsCorrect

Explanation

Appendix A states that the entity shall not extend its accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting Standards. The principle is confined to goodwill impairment, so any extension, even with auditor approval, is not allowed.

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