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CA Final · Financial Reporting · Financial Instruments: Disclosures

Sagar Ltd's reporting team compares Ind AS 107 with IFRS 7. Which of the following correctly reflects the differences noted in Appendix 1 to Ind AS 107?

Paragraphs 43-44BB of IFRS 7, dealing with effective date and transition, are not given in Ind AS 107, yet their paragraph numbers are retained to stay consistent with IFRS 7. The other statements are wrong, since 42I-42S are excluded and deleted numbers are kept.

  1. AParagraphs 42I-42S of IFRS 7, relating to initial application of IFRS 9, are included in Ind AS 107 with Indian amendments
  2. BParagraph numbers that are deleted in IFRS 7 are renumbered in Ind AS 107 to close gaps
  3. CParagraphs 43-44BB on effective date and transition are not given in Ind AS 107, but their paragraph numbers are retained for consistency with IFRS 7Correct
  4. DRequirements for a separate income statement are retained because Ind AS 1 allows the two statement approach

Explanation

Appendix 1 says paras 43-44BB are not given since they are not relevant in the Indian context, but numbers are retained for consistency. Paras 42I-42S are not included. Deleted paragraph numbers are retained, not renumbered. The separate income statement disclosure was deleted because Ind AS 1 removed the two statement option.

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