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CA Final · Financial Reporting · Consolidated Financial Statements

Which statement about the Ind AS 110 text and its comparison with IFRS 10 is correct?

Sub-paragraph (a) of B85L was deleted in Ind AS 110 because Ind AS 40 requires investment property to be measured at cost and then cost less depreciation, so the fair value condition in IFRS 10 is not relevant in the Indian context.

  1. AInd AS 110 uses the term 'statement of financial position' exactly as IFRS 10 does
  2. BSub-paragraph (a) of B85L was deleted because Ind AS 40 requires investment property to be measured at cost less depreciation, not fair valueCorrect
  3. CParagraphs 4(b) and 4(c) were renumbered so that no paragraph numbers are retained
  4. DThe effective date and transitional provisions of IFRS 10 are reproduced in Appendix C of Ind AS 110

Explanation

The comparison notes that IFRS 10 requires all investments to be at fair value for the investment entity exemption, but Ind AS 40 requires cost-based measurement for investment property, so B85L(a) was deleted. Ind AS 110 uses 'balance sheet', retains the numbers of the deleted paragraphs 4(b) and 4(c) for consistency, and excludes Appendix C.

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