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CMA Final · Corporate Financial Reporting · Intangible Assets (Ind AS 38)

Which statement about the Ind AS 38 carve-out concerning service concession arrangements for toll roads is correct, as reflected in the comparison with IAS 38?

Ind AS 38 inserts paragraph 7AA to scope out an entity that opts to amortise toll road service concession intangibles recognised in the period immediately before its first Ind AS reporting period, using the exception in Ind AS 101, Appendix D, paragraph D22.

  1. AInd AS 38 inserts a paragraph scoping out an entity that opts to amortise toll road intangibles recognised in the period ending immediately before the first Ind AS reporting period, as per the exception in Appendix D to Ind AS 101Correct
  2. BInd AS 38 requires all toll road intangibles to be amortised on a straight-line basis without exception
  3. CInd AS 38 scopes out every service concession arrangement of any kind from first-time adoption
  4. DInd AS 38 retains the IAS 38 text with no change for toll roads

Explanation

The comparison with IAS 38 notes that paragraph 7AA was inserted to scope out an entity opting to amortise toll road service concession intangibles, recognised in the period ending immediately before the first Ind AS reporting period, under the exception in paragraph D22 of Appendix D to Ind AS 101. The statement that Ind AS retains IAS text unchanged is therefore wrong.

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