Skip to content

CMA Final · Corporate Financial Reporting · Income Taxes (Ind AS 12)

Under Ind AS 12, which of the following statements about the paragraph numbering of the Standard, as explained in the comparison with IAS 12, is correct?

The effective date paragraphs of IAS 12, 89 to 98D and 98F, are omitted from Ind AS 12 because they are irrelevant in India, yet their numbers are retained so that paragraph numbering stays consistent with IAS 12. Ind AS 12 is not renumbered.

  1. AParagraphs 89 to 98D and 98F of IAS 12 on effective date are not included in Ind AS 12, but their paragraph numbers are retained for consistency with IAS 12Correct
  2. BParagraphs 89 to 98D and 98F of IAS 12 are included in Ind AS 12 with Indian effective dates substituted
  3. CParagraph numbers of Ind AS 12 are renumbered consecutively after removal of the IAS 12 effective date paragraphs
  4. DThe effective date paragraphs are retained in Ind AS 12 and apply only to first-time adopters

Explanation

The comparison with IAS 12 states that the effective date paragraphs (89 to 98D and 98F) are not included because they are not relevant in the Indian context. Their numbers are retained so that Ind AS 12 paragraph numbers stay consistent with IAS 12. Renumbering is therefore wrong.

Did you get it right without looking?

One question tells you little. A timed set on Income Taxes (Ind AS 12) shows your real accuracy, how long you take and where you lose marks.

Practise Income Taxes (Ind AS 12)Free diagnostic mock

More Income Taxes (Ind AS 12) questions