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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Ranvir Pharma Ltd is a company with a lab division and a trading division. Its Board is evaluating the scope of Ind AS 108. A director argues that the paragraphs of IFRS 8 specifying which entities (those with publicly traded debt or equity instruments) must apply the standard should remain in Ind AS 108. Which is correct regarding the Ind AS 108 position?

The IFRS 8 scope provisions on entities with publicly traded instruments are deleted from Ind AS 108, because applicability of Ind AS is governed by the Companies Act and the Rules under it. The paragraph number is retained only to stay consistent with IFRS 8 numbering.

  1. AThose IFRS 8 scope provisions are retained verbatim in Ind AS 108
  2. BThose scope provisions are deleted because applicability of Ind AS is governed by the Companies Act and the Rules made thereunder, though the paragraph number is retained for consistency with IFRS 8Correct
  3. CThey are deleted because Ind AS 108 applies to all entities including unlisted ones without exception
  4. DThey are deleted and replaced by transitional provisions within Ind AS 108

Explanation

The comparison appendix states that the IFRS 8 scope text on public-market entities is deleted in Ind AS because applicability is governed by the Companies Act and Rules. The paragraph number is retained to keep numbering consistent with IFRS 8. Transitional provisions are not in Ind AS 108 but in Ind AS 101, so option D is wrong.

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