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

Ind AS 36 Impairment of Assets, as notified in India, retains paragraph numbering of IAS 36 although some paragraphs are not carried over. Which of the following statements about Ind AS 36 is correct, based on the comparison with IAS 36?

Paragraphs 25-27 of Ind AS 36 were deleted as a consequence of Ind AS 113 Fair Value Measurement, and their numbers are retained to stay consistent with IAS 36 numbering. The other statements misdescribe the standard: paragraphs 91-95 are deleted, 2(f) is deleted, and transition sits in Ind AS 101.

  1. AParagraphs 25-27 were deleted as a consequence of Ind AS 113 Fair Value Measurement, but their numbers are retainedCorrect
  2. BParagraphs 91-95 contain additional Indian-specific rules on goodwill allocation
  3. CParagraph 2(f) permits the fair value model for investment property to be tested for impairment
  4. DThe IAS 36 transitional provisions are reproduced in full within Ind AS 36

Explanation

The comparison with IAS 36 states that paragraphs 25-27 (and 5(b)) were deleted because of Ind AS 113, with numbering retained for consistency. Paragraphs 91-95 are shown as 'Deleted' (not Indian additions). Paragraph 2(f) is deleted because Ind AS 40 requires the cost model. Transitional provisions are in Ind AS 101, not in Ind AS 36.

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