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CMA Final · Corporate Financial Reporting · Impairment of Assets (Ind AS 36)

Paragraph 2(f) of IAS 36 is deleted in Ind AS 36, and paragraph 5 is modified. Which statement gives the reason correctly?

Paragraph 2(f) is deleted because Ind AS 40 requires the cost model for investment property. Paragraph 5 is therefore modified to remove the reference to fair value measurement of investment property, while the paragraph number 2(f) is retained for consistency with IAS 36.

  1. AInd AS 40 requires the cost model, so the reference to fair value measurement of investment property is removedCorrect
  2. BInd AS 40 requires the fair value model, so impairment tests are not needed for investment property
  3. CInd AS 113 replaced the scope paragraphs of Ind AS 36 entirely
  4. DInvestment property is excluded because Ind AS 101 deals with it

Explanation

Paragraph 2(f) is deleted as Ind AS 40 requires the cost model. The paragraph number is retained for consistency with IAS 36, and paragraph 5 is modified by deleting the reference to fair value measurement of investment property. The fair value model option contradicts this.

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