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CA Final · Financial Reporting · Ind AS 108 Operating Segments

Rudra Pharma Ltd is a company whose accounts follow Ind AS. Its CFO notes that Ind AS 108 omits the scope text of IFRS 8, which applied the standard to entities whose debt or equity is publicly traded or that are filing for a public issue. What is the reason for this difference?

The IFRS 8 scope wording was removed because applicability of Ind AS 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. AInd AS 108 applies to every entity without exception, so the scope text became redundant
  2. BThe scope text was deleted because applicability of Ind AS is governed by the Companies Act and the Rules made thereunder, but the paragraph number is retainedCorrect
  3. CThe scope text was deleted because Ind AS 108 applies only to unlisted companies
  4. DThe scope text was deleted because transitional provisions are now in Ind AS 108

Explanation

The comparison appendix states the IFRS 8 scope paragraph was deleted in Ind AS because applicability or exemptions are governed by the Companies Act and Rules, with the paragraph number retained for consistency. Option 3 is wrong since transitional provisions are in Ind AS 101, not Ind AS 108.

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