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CA Final · Financial Reporting · Ind AS 113 Fair Value Measurement

Kaveri Industries Ltd's auditor asks why paragraphs C1-C5 appear in the numbering of Ind AS 113 but contain no text. Which explanation matches the Standard's comparison with IFRS 13?

Paragraphs C1-C5 of IFRS 13 are not included in Ind AS 113 because they deal with effective date and transition, which are not relevant in the Indian context. Their paragraph numbers are retained to stay consistent with IFRS 13 numbering.

  1. AThey relate to effective date and transition, not relevant in the Indian context, and the numbers are retained for consistency with IFRS 13Correct
  2. BThey were deleted because they referred to IAS 26 on retirement benefit plans
  3. CThey were deleted because Ind AS 113 does not apply to financial instruments
  4. DThey were replaced by paragraph C6 which sets out a different definition of fair value

Explanation

Paragraphs C1-C5 of IFRS 13 are not included in Ind AS 113 because they relate to effective date and transition, which are not relevant in India. Their numbers are retained to keep consistency with IFRS 13. The IAS 26 reason relates to paragraph 7(b), so that option is wrong.

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