CMA Final · Corporate Financial Reporting · Income Taxes (Ind AS 12)
Which one of the following is a stated difference between Ind AS 12 and IAS 12 arising because Ind AS 40 does not permit the fair value model?
Since Ind AS 40 disallows the fair value model, Ind AS 12 deletes paragraphs 51C and 51D and modifies paragraphs 20 and 51E. The other options attribute the changes to unrelated paragraphs.
- AParagraphs 51C and 51D of Ind AS 12 are deleted, and paragraphs 20 and 51E are modifiedCorrect
- BParagraphs 51C and 51D are retained but paragraph 61 is modified
- CParagraphs 68 and 77A are deleted and paragraph 20 is retained unchanged
- DOnly paragraph 51E is deleted; paragraphs 51C and 51D are modified
Explanation
Because the fair value model is not allowed in Ind AS 40, paragraphs 51C and 51D have been deleted. Paragraphs 20 and 51E have been modified as a consequence. The other options mix up paragraphs dealing with different changes.
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