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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Meridian Steel Ltd, listed in India, asks whether Ind AS 108 itself contains the scope paragraphs of IFRS 8 limiting the standard to entities with publicly traded debt or equity instruments. Which is correct according to the Ind AS 108 comparison with IFRS 8?

The IFRS 8 scope provisions are deleted from Ind AS 108. Applicability of Indian Accounting Standards is governed by the Companies Act and the rules made under it, and only the paragraph number is retained for consistency with IFRS 8.

  1. AThose scope provisions are retained, so only listed entities apply Ind AS 108 by the standard itself
  2. BThose provisions are deleted, as applicability is governed by the Companies Act and the rules made thereunderCorrect
  3. CThose provisions are deleted and replaced by transitional provisions within Ind AS 108
  4. DThose provisions are retained but apply only to consolidated financial statements

Explanation

The Appendix notes that the IFRS 8 scope provisions on public-market entities have been deleted in Ind AS 108 because applicability is governed by the Companies Act and rules made thereunder, with the paragraph number retained. Transitional provisions of IFRS 8 are also omitted, being in Ind AS 101, so option C is wrong.

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