Skip to content

CMA Final · Corporate Financial Reporting · Borrowing Costs (Ind AS 23)

Which statement about Ind AS 23 and IAS 23 is correct, according to the comparison in the Ind AS?

Ind AS 23 adds paragraph 6A to provide guidance on determining the adjustment referred to in paragraph 6(e), because IAS 23 offers none. Transitional provisions are in Ind AS 101, and paragraphs 6(b) and 6(c) are the deleted ones.

  1. AInd AS 23 adds paragraph 6A to guide the determination of the adjustment mentioned in paragraph 6(e), which IAS 23 does not guideCorrect
  2. BInd AS 23 removes paragraph 6(e) altogether
  3. CInd AS 23 retains IAS 23 transitional provisions in paragraphs 27-28
  4. DInd AS 23 deletes paragraph 6(a) while keeping 6(b) and 6(c)

Explanation

IAS 23 gives no guidance on how the paragraph 6(e) adjustment is determined, so Ind AS 23 adds paragraph 6A. Transitional provisions are in Ind AS 101, and paragraphs 6(b) and 6(c) are the ones shown as deleted.

Did you get it right without looking?

One question tells you little. A timed set on Borrowing Costs (Ind AS 23) shows your real accuracy, how long you take and where you lose marks.

Practise Borrowing Costs (Ind AS 23)Free diagnostic mock

More Borrowing Costs (Ind AS 23) questions