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CMA Final · Corporate Financial Reporting · Accounting for Business Combination and Restructuring

Pioneer Ltd and Zenith Ltd, common control entities, merged on 1 October 2026. Pioneer Ltd (transferee) prepares financial statements for the year ending 31 March 2027, with the comparative period being the year ended 31 March 2026. How must the comparative information be presented under Appendix C of Ind AS 103?

Prior period information is restated as if the combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual combination date. Here that is 1 April 2025. Restating only from the actual date would apply only when the combination happened later than that date.

  1. ANot restated, because the combination occurred in the current year
  2. BRestated as if the combination occurred from the beginning of the preceding period, i.e. 1 April 2025Correct
  3. CRestated only from 1 October 2026, the actual date of the combination
  4. DRestated from the date the entities first came under common control, whenever that was

Explanation

Appendix C requires prior period information to be restated as if the combination had occurred from the beginning of the preceding period, irrespective of the actual date. The beginning of the preceding period is 1 April 2025. Restating from 1 October 2026 would apply only if the combination occurred after the start of the preceding period, which is not the case here.

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