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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Rudra Infra Ltd is listed and prepares financial statements under Ind AS. A finance trainee argues that Ind AS 108 applies only to entities whose debt or equity instruments are traded in a public market, as paragraph 2 of IFRS 8 says. Which statement is correct under the official comparison with IFRS 8 provided with Ind AS 108?

The IFRS 8 scope wording on publicly traded instruments was deleted from Ind AS 108, because applicability of Indian Accounting Standards is governed by the Companies Act and the Rules made under it. The paragraph number was retained to keep numbering consistent with IFRS 8.

  1. AThe IFRS 8 scope text was deleted in Ind AS 108 because applicability is governed by the Companies Act and the Rules made thereunder, while the paragraph number was retainedCorrect
  2. BThe scope text of IFRS 8 was retained word for word in Ind AS 108
  3. CThe scope was deleted and the paragraph number was also removed to avoid inconsistency
  4. DThe scope was replaced by a requirement that only consolidated statements of a parent need segment information

Explanation

The comparison appendix states that the IFRS 8 paragraph 2 scope wording was deleted in Ind AS because applicability or exemptions are governed by the Companies Act and Rules. The paragraph number was retained to keep consistency with IFRS 8 numbering. So the trainee's reliance on the IFRS wording is wrong.

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