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CA Final · Financial Reporting · Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance

Which statement about the Ind AS 20 treatment of paragraphs 41-48 of IAS 20 and paragraph 37 is correct, as per Appendix 1 comparison?

Paragraphs 41-48 of IAS 20 on effective date are excluded from Ind AS 20 as they are not relevant in the Indian context. Paragraph number 37, which appears as Deleted in IAS 20, is retained in Ind AS 20 so numbering stays consistent.

  1. AParagraphs 41-48 are omitted as not relevant in the Indian context, and paragraph number 37, shown as Deleted in IAS 20, is retained in Ind AS 20 for numbering consistencyCorrect
  2. BParagraphs 41-48 are retained with changes, and paragraph 37 is omitted as deleted in IAS 20
  3. CParagraphs 41-48 are moved to Ind AS 101, and paragraph 37 is replaced by Ind AS 1 text
  4. DBoth are omitted, and numbering of later paragraphs is shifted accordingly

Explanation

Appendix 1 states the effective-date paragraphs 41-48 are not included as they are not relevant in the Indian context. It also says paragraph 37, which is Deleted in IAS 20, keeps its number in Ind AS 20 to maintain consistency with IAS 20 numbering. Option C wrongly links to Ind AS 101, which relates to paragraph 40, and option D is wrong because numbering is not shifted.

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