CA Final · Financial Reporting · Ind AS 103 Business Combinations
Which statement correctly compares Ind AS 103 with IFRS 3 regarding scope?
IFRS 3 excludes common control business combinations from its scope, whereas Ind AS 103 provides guidance on them in Appendix C, with paragraph 2 modified and paragraph 2B added. So Ind AS 103 does not leave such combinations without guidance.
- ABoth standards cover business combinations of entities under common control in the main body
- BIFRS 3 excludes common control combinations; Ind AS 103 gives guidance on them in Appendix CCorrect
- CInd AS 103 excludes common control combinations entirely with no guidance
- DInd AS 103 covers only common control combinations
Explanation
IFRS 3 excludes business combinations of entities under common control from its scope. Ind AS 103 gives guidance on these in Appendix C, and paragraph 2 was modified and 2B added accordingly. Hence the option claiming no guidance is wrong.
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