CMA Final · Corporate Financial Reporting · Property, Plant and Equipment (Ind AS 16)
Which statement about Ind AS 16 and Ind AS 40 is correct, according to the Ind AS 16 text comparing it with IAS 16?
Paragraph 5 of Ind AS 16 is modified because Ind AS 40 prohibits the fair value model for investment property. Transitional provisions sit in Ind AS 101, and deleted paragraph numbers are retained for consistency with IAS 16 rather than renumbered.
- AParagraph 5 of Ind AS 16 is modified because Ind AS 40 prohibits the use of the fair value modelCorrect
- BParagraph 5 of Ind AS 16 is modified because Ind AS 40 requires the fair value model
- CInd AS 16 retains transitional provisions of IAS 16 in full
- DInd AS 16 deletes paragraph numbers 4 and 27 and renumbers the remaining paragraphs
Explanation
The comparison with IAS 16 states paragraph 5 was modified since Ind AS 40 prohibits the fair value model. Transitional provisions are left to Ind AS 101. Deleted paragraph numbers are retained to keep consistency with IAS 16, not renumbered.
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