Skip to content

CA Final · Financial Reporting · Financial Instruments: Disclosures

Nilgiri Foods Ltd's CFO states four points about Ind AS 107 when briefing the board. Which one is consistent with Appendix 1 of the Standard?

Paragraphs 42I-42S of IFRS 7 are excluded from Ind AS 107 because they deal with initial application of IFRS 9, which is not relevant in India. Paragraphs 43-44BB on effective date and transition are also not given, though their numbers are retained to stay consistent with IFRS 7.

  1. AParagraphs 42I-42S of IFRS 7, relating to initial application of IFRS 9, are included in Ind AS 107 as they are relevant in India
  2. BParagraphs 43-44BB on effective date and transition are given in full in Ind AS 107 and their numbers are retained
  3. CParagraphs 42I-42S are not included because they relate to initial application of IFRS 9, and paragraph numbers 43-44BB are retained though the content on effective date and transition is not givenCorrect
  4. DParagraphs 42I-42S are omitted but paragraphs 43-44BB are fully reproduced with Indian effective dates

Explanation

Appendix 1 says paragraphs 42I-42S are not included as they relate to initial application of IFRS 9 and are not relevant in the Indian context. Paragraphs 43-44BB on effective date and transition are not given, but their numbers are retained for consistency. The other options reverse or distort this.

Did you get it right without looking?

One question tells you little. A timed set on Financial Instruments: Disclosures shows your real accuracy, how long you take and where you lose marks.

Practise Financial Instruments: DisclosuresFree diagnostic mock

More Financial Instruments: Disclosures questions