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CA Final · Financial Reporting · Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Mehta Infra Ltd, an Indian company, compares Ind AS 8 with IAS 8 to understand differences. Which of the following statements about the differences is correct according to the Ind AS 8 comparison appendix?

Ind AS 8 keeps paragraph 6 as 'deleted', as in IAS 8, and omits the content of paragraphs 54-54E on effective date and transition as not relevant in India. Paragraph numbers are retained in both cases to stay consistent with IAS 8 numbering.

  1. AParagraph 6 is retained as deleted and paragraphs 54-54E on effective date and transition are not included, with numbering retained for consistencyCorrect
  2. BParagraphs 54-54E on effective date are fully included and paragraph 6 is rewritten
  3. CParagraph 6 contains a new definition of estimates that does not exist in IAS 8
  4. DThe paragraph numbering of Ind AS 8 was changed entirely so as not to match IAS 8

Explanation

The appendix says paragraph 6 appears as deleted in IAS 8 and the number is retained in Ind AS 8 for consistency. It also says paragraphs 54-54E of IAS 8 on effective date and transition are not included as they are not relevant in the Indian context, though the numbers are retained. Other options contradict this.

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