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CMA Final · Corporate Financial Reporting · Intangible Assets (Ind AS 38)

Kaveri Infra Ltd opts to amortise intangible assets arising from toll road service concession arrangements recognised in financial statements for the period ending just before its first Ind AS reporting period, using the exception in paragraph D22 of Appendix D to Ind AS 101. What does Ind AS 38 provide through paragraph 7AA?

Paragraph 7AA scopes out of Ind AS 38 the entity that opts to amortise intangible assets from toll road service concession arrangements recognised before its first Ind AS period, using the Ind AS 101 Appendix D paragraph D22 exception.

  1. ASuch intangible assets are scoped out of Ind AS 38 for that entityCorrect
  2. BSuch assets must be tested for impairment annually under Ind AS 38
  3. CSuch assets are treated as held for sale under Ind AS 2
  4. DSuch assets are measured at fair value under Ind AS 38 revaluation model

Explanation

Per the comparison with IAS 38, paragraph 7AA was inserted to scope out the entity that opts to amortise such toll road intangible assets under the Ind AS 101 exception. The other options apply Ind AS 38 or other standards, which contradicts the scope-out.

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