Skip to content

CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Meghna Pharma Ltd, a Ind AS reporter, faced a conflict between Ind AS 34 interim measurement on a year-to-date basis and another Ind AS on a different matter (a provision measurement). Having followed the Appendix on interim reporting and goodwill impairment for goodwill, the CFO proposes to extend that same conclusion by analogy to all other potential conflicts between Ind AS 34 and other standards. Which is correct?

Meghna Pharma cannot extend the goodwill impairment conclusion by analogy. The appendix expressly says an entity shall not extend this accounting principle to other areas of potential conflict between Ind AS 34 and other Indian Accounting Standards, so each area must be assessed on its own requirements.

  1. AThe principle may be extended by analogy to all areas of conflict
  2. BThe principle may be extended by analogy only to financial instruments
  3. CThe principle may be extended only if the auditor consents
  4. DAn entity shall not extend this accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting StandardsCorrect

Explanation

The Appendix states that the entity shall not extend the accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Ind AS. The goodwill conclusion is specific. Extension to provisions or any other area is therefore not allowed.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 34 Interim Financial Reporting shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 34 Interim Financial ReportingFree diagnostic mock

More Ind AS 34 Interim Financial Reporting questions