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CA Final · Financial Reporting · Ind AS 23 Borrowing Costs

Under Ind AS 23, which statement about the Ind AS version of the standard compared with IAS 23 is correct?

Ind AS 23 adds paragraph 6A, which guides how the adjustment in paragraph 6(e) is determined, because IAS 23 provides no such guidance. Paragraphs 6(b) and 6(c) are shown as deleted, and IAS 23 transitional paragraphs are not carried over.

  1. AInd AS 23 adds paragraph 6A to give guidance on determining the adjustment prescribed in paragraph 6(e), on which IAS 23 gives no guidanceCorrect
  2. BInd AS 23 deletes paragraph 6A that exists in IAS 23
  3. CInd AS 23 includes IAS 23 transitional paragraphs 27-28 unchanged
  4. DInd AS 23 retains paragraphs 6(b) and 6(c) with new content

Explanation

Appendix 1 states IAS 23 gives no guidance on determining the paragraph 6(e) adjustment, so paragraph 6A is added in Ind AS 23. Paragraphs 6(b) and 6(c) appear as deleted, with numbers retained, and transitional paragraphs 27-28 are not included.

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