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CMA Final · Corporate Financial Reporting · Operating Segments (Ind AS 108)

Which statement about the relationship between Ind AS 108 and IFRS 8 is correct as per the Ind AS 108 text?

The IFRS 8 scope wording on entities with publicly traded instruments is deleted in Ind AS 108, because applicability is governed by the Companies Act and Rules made under it. The paragraph number is retained for consistency with IFRS 8, and transitional provisions sit in Ind AS 101.

  1. AInd AS 108 contains the IFRS 8 transitional provisions in full
  2. BInd AS 108 applies only to entities whose securities are traded publicly, as in IFRS 8 paragraph 2
  3. CThe IFRS 8 scope paragraph on public-market entities is deleted in Ind AS 108 because applicability is governed by the Companies Act and Rules, though the paragraph number is retainedCorrect
  4. DInd AS 108 omits all IFRS 8 paragraph numbers to avoid confusion

Explanation

The comparison appendix says IFRS 8 paragraph 2 scope wording on public-market entities is deleted in Ind AS because applicability is governed by the Companies Act and Rules; the paragraph number is retained for consistency. Transitional provisions were not given in Ind AS 108 but are placed in Ind AS 101. So the first option and the last option are wrong.

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