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

Ind AS 105 omits paragraph 5(d) of IFRS 5, which concerned a particular category of non-current assets. Which statement correctly explains this omission?

Paragraph 5(d) of IFRS 5 dealt with non-current assets accounted for under the fair value model in IAS 40. Because Ind AS 40 prohibits the fair value model, the paragraph is deleted in Ind AS 105 as not applicable.

  1. AInd AS 40 prohibits the fair value model, so the paragraph dealing with investment property carried at fair value is deletedCorrect
  2. BInd AS 40 requires all investment property to be carried at fair value, making the paragraph redundant
  3. CInvestment property can never be held for sale under Ind AS
  4. DParagraph 5(d) dealt with biological assets, which Ind AS 41 excludes

Explanation

IFRS 5 paragraph 5(d) addressed non-current assets accounted for under the fair value model in IAS 40. Since Ind AS 40 prohibits the fair value model, the paragraph is deleted in Ind AS 105. The second option reverses the position.

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