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

Meridian Pharma Ltd. is a first-time adopter of Ind AS. Its finance head searches Ind AS 36 for the transitional provisions found in IAS 36 and cannot find them. According to the Ind AS 36 comparison with IAS 36, why are they absent?

Ind AS 36 omits the transitional provisions found in IAS 36 because all Ind AS transitional provisions, wherever considered appropriate, are placed in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1.

  1. AThey are covered by Ind AS 8 on changes in accounting policies
  2. BThey are included in Ind AS 101 First-time Adoption, where considered appropriate, since all Ind AS transitional provisions are located thereCorrect
  3. CThey apply only to Indian entities listed on foreign exchanges
  4. DThey were replaced by a requirement to restate impairment losses of earlier years

Explanation

The comparison says the transitional provisions in IAS 36 are not given in Ind AS 36 because all transitional provisions, wherever considered appropriate, are included in Ind AS 101. Ind AS 8 is not named as the source. No restatement requirement is mentioned.

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