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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Lotus Retail Ltd is listed and its CODM uses a single set of reports by business line. A finance executive claims Ind AS 108 itself decides which companies must apply it, as IFRS 8 does through its paragraph 2 on public trading. What is the correct position?

Ind AS 108 does not carry the IFRS 8 scope test on public trading. That wording was deleted because applicability of Ind AS is governed by the Companies Act and the Rules made under it, though the paragraph number was retained for consistency with IFRS 8.

  1. AInd AS 108 retains the IFRS 8 scope wording on public trading for deciding applicability
  2. BThe scope wording of IFRS 8 was deleted in Ind AS 108 since applicability is governed by the Companies Act and Rules made thereunderCorrect
  3. CApplicability under Ind AS 108 depends on filing with a securities commission only
  4. DInd AS 108 applies to all entities irrespective of the Companies Act

Explanation

The comparison appendix notes that IFRS 8 paragraph 2 scope provisions on public trading or filing with a securities commission were deleted in Ind AS because applicability is governed by the Companies Act and Rules. The paragraph number is retained for consistency with IFRS 8. So the executive's claim is incorrect.

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