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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Rohini Steel Ltd concludes that the principle in the Ind AS 34 appendix on goodwill impairment, which prevents reversal of an interim goodwill impairment, should also be applied by analogy to resolve every other conflict between Ind AS 34 and other Ind AS. What does the appendix say?

Rohini Steel cannot extend the principle. The appendix says an entity shall not extend the accounting principle on interim goodwill impairment by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting Standards, so the goodwill rule stays confined to goodwill.

  1. AThe principle may be extended by analogy to all areas of conflict
  2. BThe principle may be extended by analogy only to intangible assets
  3. CThe principle may be extended by analogy only to financial instruments
  4. DAn entity shall not extend this accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Indian Accounting StandardsCorrect

Explanation

The appendix states that an entity shall not extend this accounting principle by analogy to other areas of potential conflict between Ind AS 34 and other Ind AS. Rohini's approach is therefore not permitted, and each other area must be assessed under its own requirements.

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