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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Ind AS 108 as notified in India does not contain the paragraph of IFRS 8 that sets out which entities the standard applies to (those with publicly traded instruments or filing for public issue). What is the stated reason?

The scope text was deleted because applicability or exemptions to Indian Accounting Standards are governed by the Companies Act and the Rules made under it. The paragraph number is nevertheless retained in Ind AS 108 to stay consistent with IFRS 8 numbering.

  1. AApplicability is governed by the Companies Act and the Rules made thereunder, though the paragraph number is retainedCorrect
  2. BThe ICAI decided segment reporting is optional for all Indian companies
  3. CTransitional provisions of IFRS 8 have been moved into this paragraph
  4. DThe paragraph was deleted because Ind AS 108 applies only to banks

Explanation

Appendix 1 explains that the scope text of IFRS 8 paragraph 2 has been deleted because applicability or exemptions to Ind AS are governed by the Companies Act and the Rules made thereunder. The paragraph number is retained to keep consistency with IFRS 8. The other options misstate this.

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