Skip to content

CA Final · Financial Reporting · Ind AS 12 Income Taxes

Meera Textiles Ltd is first-time adopting Ind AS. Its team looks in Ind AS 12 for the transitional provisions that SIC 25 gave on changes in the tax status of an entity or its shareholders. Where would they find the relevant transitional provisions, per the comparison with IAS 12?

The relevant transitional provisions are in Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 12 does not reproduce the SIC 25 transitional provisions, because all Ind AS transitional provisions, where appropriate, are placed in Ind AS 101.

  1. AIn Ind AS 12, paragraph 98F
  2. BIn Ind AS 101, because transitional provisions of Ind AS are included there where considered appropriateCorrect
  3. CIn Ind AS 8, since it covers accounting policy changes
  4. DThey do not exist anywhere in the Ind AS framework

Explanation

The comparison states that SIC 25 transitional provisions are not given in Ind AS 12. All transitional provisions related to Ind ASs, where considered appropriate, are included in Ind AS 101. Paragraph 98F is among the effective date paragraphs not included in Ind AS 12.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 12 Income Taxes shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 12 Income TaxesFree diagnostic mock

More Ind AS 12 Income Taxes questions