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

Mehta Infra Ltd's accountant states: 'Ind AS 8 follows IAS 8 in all respects including terminology, effective date paragraphs 54-54E, and the status of guidance in paragraph 9.' Which observation reflects the carve-outs of Ind AS 8 from IAS 8 as given in the official comparison?

Ind AS 8 omits IAS 8 paragraphs 54-54E on effective date and transition while retaining their numbers, and modifies paragraph 9 to delete text on guidance forming non-integral part of the standard. Terminology also differs, using balance sheet and statement of profit and loss.

  1. ATerminology is identical, using 'statement of financial position' and 'statement of comprehensive income'
  2. BParagraphs 54-54E on effective date and transition are not included but their numbers are retained; paragraph 9 is modified to delete text on guidance forming non-integral partCorrect
  3. CParagraph 6 is operative in Ind AS 8 but deleted in IAS 8
  4. DParagraph 12 prohibits consideration of IASB pronouncements and paragraph 9 is unchanged

Explanation

The comparison states that paragraphs 54-54E of IAS 8 are not included, though their numbers are retained for consistency. Paragraph 9 is modified to delete text about non-integral guidance since such guidance is not included. Terminology differs (balance sheet, statement of profit and loss), and paragraph 6 is 'deleted' in IAS 8 with its number retained in Ind AS 8, so the other options are wrong.

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