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CA Final · Financial Reporting · Financial Instruments: Disclosures

Sagar Textiles Ltd is preparing its first Ind AS financial statements and is comparing Ind AS 107 with IFRS 7. The finance head notes that Ind AS 107 contains no transitional provisions of its own. Which statement correctly explains why, as per the Comparison with IFRS 7 in Ind AS 107?

Ind AS 107 omits IFRS 7's transitional provisions because all transitional provisions relating to Ind ASs, wherever considered appropriate, have been placed in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1.

  1. ATransitional provisions are not relevant to financial instruments disclosures under Indian law
  2. BAll transitional provisions related to Ind ASs, wherever considered appropriate, have been included in Ind AS 101Correct
  3. CTransitional provisions are to be decided by each entity's board at the time of adoption
  4. DTransitional provisions are contained in Ind AS 109 and apply to all disclosure standards

Explanation

The comparison with IFRS 7 states that IFRS 7's transitional provisions were not carried into Ind AS 107 because all Ind AS transitional provisions, where appropriate, are in Ind AS 101 (First-time Adoption). The other options invent reasons not found in the text.

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