Skip to content

CMA Final · Corporate Financial Reporting · Property, Plant and Equipment (Ind AS 16)

Which statement correctly describes how Ind AS 16 differs from IAS 16, according to the comparison in its Appendix 1?

Paragraph 5 of Ind AS 16 is modified because Ind AS 40, Investment Property, prohibits the fair value model. The IASB proceeds amendment was not adopted, transitional provisions are in Ind AS 101, and deleted IAS paragraph numbers are retained.

  1. AInd AS 16 has adopted the IASB 2020 amendment prohibiting deduction of proceeds before intended use
  2. BInd AS 16 includes its own detailed transitional provisions in paragraphs 80 to 80C
  3. CParagraph 5 of Ind AS 16 is modified because Ind AS 40 prohibits use of the fair value modelCorrect
  4. DInd AS 16 has removed paragraph numbers that are 'Deleted' in IAS 16 and renumbered the standard

Explanation

Appendix 1 says paragraph 5 was modified since Ind AS 40 prohibits the fair value model. The IASB proceeds amendment was not made in Ind AS 16, transitional provisions sit in Ind AS 101, and the deleted paragraph numbers are retained for consistency, not removed.

Did you get it right without looking?

One question tells you little. A timed set on Property, Plant and Equipment (Ind AS 16) shows your real accuracy, how long you take and where you lose marks.

Practise Property, Plant and Equipment (Ind AS 16)Free diagnostic mock

More Property, Plant and Equipment (Ind AS 16) questions