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

Which statement correctly describes how the scope of Ind AS 108 differs from IFRS 8 as set out in the comparison with IFRS 8?

Ind AS 108 deletes the IFRS 8 scope text on publicly traded or filing entities because applicability is governed by the Companies Act and its Rules. The paragraph number is nevertheless retained to stay consistent with IFRS 8, so numbering is not changed.

  1. AInd AS 108 applies to all entities, including unlisted private companies, because the IFRS 8 scope has been deleted
  2. BThe IFRS 8 scope paragraphs for entities with publicly traded instruments or filing for public issue were deleted in Ind AS 108, as applicability is governed by the Companies Act and the Rules; the paragraph number is retainedCorrect
  3. CInd AS 108 retains the IFRS 8 scope paragraph in full and adds a further requirement for listed companies
  4. DInd AS 108 omits the paragraph number 2 entirely, so later paragraphs are renumbered

Explanation

IFRS 8 paragraph 2 limits the standard to entities with publicly traded instruments or filing for public issue. Ind AS deletes this text because applicability and exemptions are governed by the Companies Act and the Rules made thereunder. The paragraph number is retained for consistency with IFRS 8, so there is no renumbering. Deletion therefore does not make the standard apply to all entities.

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