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CA Final · Financial Reporting · Ind AS 113 Fair Value Measurement

Narmada Steel Ltd's finance team debates why paragraphs C1-C5 of IFRS 13 are absent from Ind AS 113 while the numbering still runs on, and how the Standard's Appendix 1 should be treated. Which view is correct?

Appendix 1 is not part of Ind AS 113; it only highlights differences from IFRS 13. Paragraphs C1-C5 were left out because effective date and transition are not relevant in India, but the paragraph numbers are retained to stay consistent with IFRS 13.

  1. AAppendix 1 is not part of the Standard; C1-C5 were omitted as they relate to effective date and transition, not relevant in India, with numbering kept consistent with IFRS 13Correct
  2. BAppendix 1 is a mandatory part of the Standard, and C1-C5 were omitted because fair value does not apply in India
  3. CAppendix 1 is part of the Standard and requires entities to apply IFRS 13 transition rules
  4. DC1-C5 were omitted because they were replaced by new paragraphs renumbered from C1 in Ind AS 113

Explanation

The Appendix 1 note states it is not part of the Indian Accounting Standard and only brings out major differences from IFRS 13. C1-C5 relate to effective date and transition, not relevant in the Indian context, and the numbers are retained for consistency. The other options misstate either the status of the Appendix or the reason for omission.

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