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

Ind AS 105 differs from IFRS 5 in its treatment of non-current assets accounted for under the fair value model for investment property. Which statement correctly describes the position in Ind AS 105?

Ind AS 105 deletes the IFRS 5 paragraph 5(d) that deals with non-current assets measured under the fair value model of investment property, because Ind AS 40 does not permit the fair value model. So no such carve-out is needed in the Indian standard.

  1. AThe fair value model paragraph is deleted because Ind AS 40 prohibits the fair value modelCorrect
  2. BThe fair value model paragraph is retained, and such assets are measured at fair value less costs to sell
  3. CThe fair value model paragraph is retained, but only for investment property held by subsidiaries
  4. DThe fair value model paragraph is replaced by a revaluation model for such assets

Explanation

The comparison with IFRS 5 states that paragraph 5(d) of IFRS 5, which deals with assets under the fair value model in IAS 40, is deleted in Ind AS 105. The reason is that Ind AS 40 prohibits the fair value model. The other options assume a fair value or revaluation treatment that does not exist in Ind AS 105.

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