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CA Final · Financial Reporting · Ind AS 103 Business Combinations

Which statement best describes how Ind AS 103 relates to IFRS 3 regarding business combinations of entities under common control?

IFRS 3 excludes business combinations of entities under common control from its scope, while Ind AS 103 gives guidance for them in Appendix C. Paragraph 2 was modified and paragraph 2B added to Ind AS 103 to reflect this difference.

  1. AIFRS 3 covers them in full, and Ind AS 103 adopts the same guidance without change
  2. BBoth standards exclude them and neither gives any guidance
  3. CIFRS 3 excludes them from scope, whereas Ind AS 103 gives guidance in its Appendix CCorrect
  4. DInd AS 103 excludes them and refers entirely to Ind AS 110

Explanation

The comparison with IFRS 3 notes that IFRS 3 excludes business combinations of entities under common control from its scope. Ind AS 103 provides guidance on them in Appendix C, and paragraph 2 was modified and paragraph 2B added accordingly. The other options misstate this difference.

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