Skip to content

CA Final · Financial Reporting · Ind AS 36 Impairment of Assets

Mehta Steels Ltd. is first-time adopting Ind AS and asks where it will find the transitional provisions for impairment of assets, since it expected them in Ind AS 36 as in IAS 36. Per the comparison with IAS 36, where are they?

They are in Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 36 does not carry the IAS 36 transitional provisions, because all transitional provisions considered appropriate for Ind AS are placed in Ind AS 101.

  1. AIn Ind AS 36 paragraphs 138-140K.
  2. BIn Ind AS 101, First-time Adoption of Indian Accounting Standards, as considered appropriate.Correct
  3. CIn Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
  4. DThey do not exist anywhere in the Ind AS framework.

Explanation

The transitional provisions in IAS 36 are not in Ind AS 36, since all relevant transitional provisions are included in Ind AS 101. Paragraphs 138-140K are retained only as numbers without content because they are not relevant in the Indian context. So the first option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 36 Impairment of Assets shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 36 Impairment of AssetsFree diagnostic mock

More Ind AS 36 Impairment of Assets questions