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CA Final · Financial Reporting · Financial Instruments: Disclosures

Tulsi Foods Ltd's accountant, while referring to Ind AS 107, finds that several paragraph numbers, for example 12-12A and 13, appear as 'Deleted'. A junior asks whether this means the paragraph numbering of Ind AS 107 differs from IFRS 7, and why transition paragraphs 43-44BB carry no content. Which statement is correct per the appendix?

Ind AS 107 retains the IFRS 7 paragraph numbers, including those shown as deleted, to maintain consistency. Paragraphs 43-44BB on effective date and transition are not given because they are not relevant in the Indian context, and transitional provisions are in Ind AS 101.

  1. AThe paragraph numbers are retained to stay consistent with IFRS 7; paragraphs 43-44BB on effective date and transition are not given because they are not relevant in the Indian context, with transition addressed in Ind AS 101Correct
  2. BParagraph numbers were reallotted in Ind AS 107, and paragraphs 43-44BB were moved to Ind AS 1
  3. CParagraphs 43-44BB were deleted because Ind AS 107 applies only from the date of first-time adoption and needs no transition rules, so numbers were reused
  4. DParagraphs 12-12A and 13 were deleted because they were replaced by new Indian-specific paragraphs with the same numbers

Explanation

The appendix says paragraphs shown as 'Deleted' in IFRS 7 keep their numbers in Ind AS 107 for consistency. Paragraphs 43-44BB are not given since they are not relevant in the Indian context, though their numbers are retained. Transitional provisions are included in Ind AS 101. The other options wrongly claim renumbering or reuse of numbers.

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