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

Kaveri Industries Ltd. is reviewing Ind AS 36 and notices that paragraph numbers 25-27 and 5(b) have no content. The company's accountant wants to know the reason. Which explanation matches the Ind AS 36 comparison with IAS 36?

Paragraphs 5(b) and 25-27 of Ind AS 36 were deleted as a consequence of Ind AS 113 Fair Value Measurement. Their numbers are retained so the paragraph numbering stays consistent with IAS 36. The deletion does not remove fair value less costs of disposal as a concept.

  1. AThey were deleted as a consequence of Ind AS 113 Fair Value Measurement, with numbering retained for consistency with IAS 36Correct
  2. BThey were deleted because Ind AS 36 does not permit use of fair value less costs of disposal
  3. CThey were deleted because transitional provisions are covered in Ind AS 101
  4. DThey were deleted because they referred to illustrative examples that are not part of the Standard

Explanation

The comparison states that paragraphs 5(b) and 25-27 were deleted as a consequence of Ind AS 113, and numbering was retained. Transitional provisions relate to other paragraphs (138-140K and 140M), and illustrative-example references relate to paragraphs 103, 137 and C9. Fair value less costs of disposal remains a valid concept.

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