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CMA Final · Corporate Financial Reporting · Operating Segments (Ind AS 108)

Kaveri Pharma Ltd is a company whose shares are not listed. It prepares Ind AS financial statements and asks whether Ind AS 108 itself decides who must apply the standard. Which statement matches the Ind AS 108 comparison with IFRS 8?

The IFRS 8 scope paragraph on public-market entities is deleted in Ind AS 108, because applicability and exemptions for Indian Accounting Standards are governed by the Companies Act and the rules made under it. The paragraph number is kept only for consistency with IFRS 8.

  1. AInd AS 108 applies only to entities whose securities are traded on a foreign stock exchange
  2. BInd AS 108 applies only to groups that file consolidated statements with a securities commission
  3. CThe IFRS 8 applicability text on public-market entities is deleted in Ind AS 108, because applicability is governed by the Companies Act and the rules made under itCorrect
  4. DInd AS 108 contains its own transitional provisions for first-time adopters

Explanation

The comparison appendix notes that paragraph 2 of IFRS 8, which covered entities with public-market instruments, is deleted in Ind AS 108. Applicability or exemption is governed by the Companies Act and the rules made under it. The paragraph number is retained for consistency. Transitional provisions are in Ind AS 101, not Ind AS 108.

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