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CA Final · Financial Reporting · Ind AS 36 Impairment of Assets

Ind AS 36 as notified in India omits some paragraphs that appear in IAS 36. A trainee at Bharat Auto Components Ltd asks why paragraphs 25-27 of Ind AS 36 contain no requirements, even though the numbering continues. What is the reason given in the comparison with IAS 36?

Paragraphs 25-27 of Ind AS 36 were deleted as a consequence of Ind AS 113, Fair Value Measurement, which now governs fair value measurement. The paragraph numbering was kept unchanged so that it stays consistent with the numbering of IAS 36.

  1. AThey were deleted as a consequence of Ind AS 113, Fair Value Measurement, and numbering was retainedCorrect
  2. BThey were deleted because transitional provisions are covered in Ind AS 101
  3. CThey were deleted because they referred to illustrative examples that are not part of the Standard
  4. DThey were deleted because they dealt with investment property at fair value

Explanation

The comparison states that paragraphs 25-27 (and paragraph 5(b)) were deleted as a consequence of Ind AS 113, with numbering retained to match IAS 36. Transitional provisions relate to paragraphs 138-140K and 140M, and illustrative example references relate to paragraphs 103, 137 and C9. Those are different paragraphs, so the other options mismatch.

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