CA Final · Financial Reporting · Financial Instruments: Disclosures
Sundaram Textiles Ltd prepares its financial statements under Ind AS. Its finance team asks why Ind AS 107 contains paragraph numbers that appear as 'Deleted' (for example, paragraphs 22, 23 and 24), and also why it does not carry the transitional provisions found in IFRS 7. Which statement is correct as per Appendix 1 of Ind AS 107?
Ind AS 107 retains paragraph numbers that are 'Deleted' in IFRS 7 so that numbering stays consistent with IFRS 7. IFRS 7 transitional provisions are not repeated because all relevant transitional provisions are placed in Ind AS 101, First-time Adoption of Indian Accounting Standards.
- AThe deleted paragraph numbers are retained to maintain consistency with the paragraph numbers of IFRS 7, and transitional provisions are instead included in Ind AS 101Correct
- BThe deleted paragraphs were renumbered so that Ind AS 107 has fewer paragraphs than IFRS 7, and transitional provisions are in Ind AS 8
- CThe transitional provisions of IFRS 7 were retained in Ind AS 107 but the deleted paragraphs were removed altogether
- DThe transitional provisions were omitted because Ind AS 107 applies only to first-time adopters, who need no transition
Explanation
Appendix 1 states that the paragraphs shown as 'Deleted' in IFRS 7 keep their numbers in Ind AS 107 for consistency. It also says transitional provisions of IFRS 7 are not given in Ind AS 107 because they are included in Ind AS 101. The Ind AS 8 option is wrong because the transition is housed in Ind AS 101.
Did you get it right without looking?
One question tells you little. A timed set on Financial Instruments: Disclosures shows your real accuracy, how long you take and where you lose marks.
More Financial Instruments: Disclosures questions
- Kaveri Power Ltd presents its results under Ind AS 1 and reports components of profit or loss and other comprehensive income in one statemen…
- Kaveri Pharma Ltd gives numerical sensitivity tables for interest rate and currency risk in its financial statements. The CFO proposes to om…
- Godavari Pharma Ltd's accountant is updating the Ind AS 107 disclosure checklist and finds several paragraph numbers that appear with no con…
- Bharat Infra Ltd, an Indian company, asks why Ind AS 107 retains paragraph numbers such as 12-12A, 13 and 16 even though they carry no requi…
- Sagar Textiles Ltd is preparing its first Ind AS 107 disclosures. The finance manager notes that IFRS 7 presents gains and losses in a separ…
- Narmada Infra Ltd discloses numerical sensitivity tables for credit, liquidity and market risk but gives no narrative on how management view…