CA Final · Financial Reporting · Financial Instruments: Scope and Definitions

Vindhya Foods Ltd has the following items: (i) a trade receivable arising from a contract with customer that is a financial instrument and that Ind AS 115 says is accounted for under Ind AS 109; (ii) its own ordinary shares issued, meeting the definition of equity under Ind AS 32; (iii) a lease liability recognised as lessee under Ind AS 116; (iv) an employer's obligation under a defined benefit plan covered by Ind AS 19. Which statement about the scope of Ind AS 109 is correct?

The trade receivable is within Ind AS 109, as Ind AS 115 directs. The issuer's own equity shares and the employer's Ind AS 19 obligations are excluded. A lessee's lease liability is excluded except that the derecognition requirements of Ind AS 109 apply to it.

1. AThe trade receivable is within scope; the own equity shares and the Ind AS 19 obligation are outside scope; the lease liability is subject to the derecognition requirementsCorrect
2. BAll four items are fully within scope
3. COnly the trade receivable and lease liability are outside scope
4. DThe own equity shares are within scope for the issuer, but the lease liability is outside entirely