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CA Final · Financial Reporting · Ind AS 12 Income Taxes

Ind AS 12 has been modified compared with IAS 12 in paragraph 20 and paragraph 51E. What is the stated reason for these modifications?

The modifications to paragraphs 20 and 51E, and deletion of 51C-51D, arise because Ind AS 40 does not permit the fair value model for investment property. The bargain purchase gain difference relates to a different paragraph, namely 68(a).

  1. AInd AS 40 does not allow the fair value model, so paragraphs 51C-51D were deleted and paragraphs 20 and 51E were modifiedCorrect
  2. BInd AS 103 treats bargain purchase gain differently from IFRS 3
  3. CInd AS 101 contains the transitional provisions of SIC 25
  4. DInd AS 1 removed the two-statement approach for presenting profit or loss

Explanation

The comparison states that, as a consequence of not allowing the fair value model in Ind AS 40, paragraphs 51C-51D were deleted and paragraphs 20 and 51E modified. The bargain purchase point relates instead to paragraph 68(a), so that option is wrong for this question.

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