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

Kaveri Pharma Ltd is reviewing its Ind AS 36 reference material. The notes say paragraphs 138-140K and 140M of IAS 36 are not reproduced in Ind AS 36. Which statement correctly reflects the official comparison text about these paragraphs and about transition to Ind AS?

Paragraphs 138-140K and 140M, covering transitional provisions and effective date, are not included in Ind AS 36 because they are not relevant in the Indian context. The paragraph numbers are kept for consistency, and relevant transitional provisions are placed in Ind AS 101 instead.

  1. AThey were not included as they are not relevant in Indian context, and transitional provisions are in Ind AS 101Correct
  2. BThey were included in full but renumbered
  3. CThey were replaced by paragraphs requiring retrospective impairment testing of all assets
  4. DThey were deleted because Ind AS 113 now covers them

Explanation

The comparison says paragraphs 138-140K and 140M deal with transitional provisions and effective date and were not included as not relevant in Indian context, with numbers retained. It also says transitional provisions are covered in Ind AS 101. The Ind AS 113 reason applies to paragraphs 25-27, so that option is wrong.

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