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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Meridian Steel Ltd is moving to Ind AS and asks where the transitional provisions for Ind AS 108 are found, noting that IFRS 8 contains its own transitional provisions. Which answer is correct?

Ind AS 108 does not contain IFRS 8's transitional provisions. All transitional provisions of Ind AS that are considered appropriate have been placed in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1, so a first-time adopter should refer there.

  1. AInd AS 108 reproduces the IFRS 8 transitional provisions in full
  2. BInd AS 108 has no transitional provisions; those considered appropriate are included in Ind AS 101, First-time Adoption of Indian Accounting StandardsCorrect
  3. CTransitional provisions are left to the discretion of each company's board
  4. DThey are contained in Ind AS 8 for all standards

Explanation

The comparison appendix states that the transitional provisions in IFRS 8 are not given in Ind AS 108. All transitional provisions of Ind AS, wherever considered appropriate, are included in Ind AS 101, which corresponds to IFRS 1. Option A is therefore wrong.

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