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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Meghdoot Ltd runs a staff gratuity trust and a provident fund trust for its employees. The CODM receives separate financial reports on the performance of each plan, including investment returns. How does Ind AS 108 treat these plans?

The plans are not operating segments. Ind AS 108 explicitly states that an entity's post-employment benefit plans are not operating segments, so reporting their results to the CODM or their size does not change that treatment.

  1. AThey are operating segments because separate reports go to the CODM
  2. BThey are operating segments only if their assets exceed 10% of total assets
  3. CThey are operating segments if they earn investment income
  4. DThey are not operating segments, as post-employment benefit plans are excludedCorrect

Explanation

Ind AS 108 provides that an entity's post-employment benefit plans are not operating segments for the purposes of the standard. This holds even if the CODM reviews their results, so the report in option A does not change the result.

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