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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

Vikram Engineering Ltd's accountant prepares a memo on Ind AS 105 numbering. He notes that IFRS 5 paragraphs 43 (transition) and 44-44L (effective date) do not appear with content in Ind AS 105, yet numbering gaps are absent. Which explanation is correct according to the Comparison with IFRS 5?

Paragraph 43 is not included because transitional provisions are placed in Ind AS 101, and paragraphs 44-44L are excluded as not relevant in the Indian context. The paragraph numbers are nevertheless retained to maintain consistency with the numbering of IFRS 5.

  1. AParagraph 43 is omitted as transitional provisions are in Ind AS 101, and paragraphs 44-44L are omitted as not relevant in the Indian context; the numbers are retained for consistency with IFRS 5Correct
  2. BParagraph 43 is omitted because transition is covered in Ind AS 8, and paragraphs 44-44L are omitted because they were repealed worldwide
  3. CBoth are omitted and the numbers are not retained, so Ind AS 105 has different numbering
  4. DParagraph 43 is retained with full content, while paragraphs 44-44L are omitted

Explanation

The comparison states that transitional provisions are included in Ind AS 101, so paragraph 43 is not included, and 44-44L on effective date are not relevant in the Indian context. In both cases the paragraph numbers are retained to stay consistent with IFRS 5. Citing Ind AS 8 for transition is wrong.

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