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

Kaveri Infra Ltd. reviews its Ind AS 36 working papers. A reviewer notes that the paper cites illustrative examples referred to in paragraphs 103, 137 and C9 of Appendix C. Under Ind AS 36 as notified, which statement is correct?

All three references are deleted in Ind AS 36: paragraph 103 on corporate assets, paragraph 137 on disclosures, and paragraph C9 of Appendix C on a non-wholly-owned cash-generating unit with goodwill. They referred to illustrative examples that are not integral to the standard, and the numbers are retained.

  1. AThose paragraphs are retained and the examples are integral to the standard, so they must be applied for disclosure
  2. BThose paragraphs are retained but only the example on corporate assets (paragraph 103) is deleted
  3. COnly paragraph C9 is deleted since it concerns goodwill, while 103 and 137 remain operative
  4. DThe paragraphs making reference to Illustrative Examples, which are not integral part of IAS 36, are deleted in Ind AS 36 with numbers retainedCorrect

Explanation

The comparison lists paragraph 103 (corporate assets example), 137 (disclosure example) and C9 of Appendix C (non-wholly-owned CGU with goodwill example) as deleted because they refer to illustrative examples that are not integral to the standard. Numbers are retained for consistency. So all three are deleted, not only one.

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