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CA Final · Financial Reporting · Financial Instruments: Disclosures

Kaveri Power Ltd notes that Ind AS 107 contains the same paragraph numbers as IFRS 7 even though some IFRS 7 paragraphs are not applicable in India. How does Appendix 1 to Ind AS 107 explain paragraphs such as 43 to 44BB of IFRS 7, relating to effective date and transition?

Paragraphs 43 to 44BB of IFRS 7 on effective date and transition are not given in Ind AS 107 because they are not relevant in India. Their paragraph numbers are nevertheless retained, so the numbering stays consistent with IFRS 7.

  1. AThey are omitted from the Standard and renumbered so that paragraph numbers run consecutively
  2. BThey are retained with full text as they are relevant in the Indian context
  3. CThey are not given in Ind AS 107 as not relevant in the Indian context, but the paragraph numbers are retained for consistency with IFRS 7Correct
  4. DThey are replaced by paragraphs 42I-42S, which cover initial application of Ind AS 109

Explanation

Appendix 1 says paragraphs 43-44BB are not given because they are not relevant in the Indian context, yet the paragraph numbers are retained for consistency with IFRS 7. Paragraphs 42I-42S are also not included. The option on renumbering is wrong because the numbers are retained.

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