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CMA Intermediate · Corporate Accounting and Auditing · Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)

Which combination correctly reflects the scope rules and Indian-specific features of Ind AS 37 compared with IAS 37?

Ind AS 37 applies to all entities except items under executory contracts (unless onerous) and items covered by another Standard. Its transitional provisions are not in Ind AS 37 but are placed in Ind AS 101, First-time Adoption of Indian Accounting Standards.

  1. AInd AS 37 applies to all entities for items not covered by another Standard; transitional provisions are in Ind AS 101 rather than Ind AS 37Correct
  2. BInd AS 37 applies only to listed companies; transitional provisions are in Ind AS 37 itself
  3. CInd AS 37 covers items dealt with by other Standards in addition; transitional provisions are in Ind AS 37 itself
  4. DInd AS 37 excludes onerous contracts entirely; transitional provisions are in Ind AS 101

Explanation

The scope says the Standard applies to all entities except executory contracts (unless onerous) and items covered by another Standard. Appendix 1 notes that IAS 37's transitional provisions are not given in Ind AS 37 because they are included in Ind AS 101. Other options misstate one of these points.

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