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CA Final · Financial Reporting · Ind AS 116 Leases

Tulsi Retail Ltd has lease liabilities whose cash flows are indexed to a benchmark interest rate. Following the Interest Rate Benchmark Reform Phase 2 amendments, the CFO asks about their application. Which statement is correct per the official text of Ind AS 116?

The Phase 2 interest rate benchmark amendments added paragraphs 104-106 and C20C-C20D to Ind AS 116 and apply to annual reporting periods beginning on or after 1 April 2021. They also amended Ind AS 109, Ind AS 107 and Ind AS 104.

  1. AThe amendments added paragraphs 104-106 and C20C-C20D and apply to annual reporting periods beginning on or after 1 April 2021Correct
  2. BThe amendments apply only to annual periods beginning on or after 1 April 2023
  3. CThe amendments amended Ind AS 116 only and left Ind AS 109 and Ind AS 107 unchanged
  4. DThe amendments were inserted by a notification dated 18 June 2019 and apply from 1 April 2020

Explanation

Phase 2 amended Ind AS 109, 107, 104 and 116 and added paragraphs 104-106 and C20C-C20D to Ind AS 116. Entities apply them for annual reporting periods beginning on or after 1 April 2021, as inserted by notification G.S.R. 419(E) dated 18 June 2021. The other options misstate the date or scope.

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