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CA Final · Financial Reporting · Ind AS 103 Business Combinations

Which statement correctly describes the scope-related differences of Ind AS 103 compared with IFRS 3, as explained in the comparison with IFRS 3?

IFRS 3 excludes combinations of entities under common control from its scope, whereas Ind AS 103 covers them through guidance in Appendix C. Paragraph 2 was modified and paragraph 2B added for this purpose. The other statements reverse the position or add a listed-entity restriction that does not exist.

  1. AIFRS 3 excludes business combinations of entities under common control, while Ind AS 103 gives guidance on them in Appendix CCorrect
  2. BInd AS 103 excludes common control combinations entirely, while IFRS 3 gives guidance in an appendix
  3. CBoth exclude common control combinations and neither gives guidance
  4. DInd AS 103 covers common control combinations but only for listed entities

Explanation

IFRS 3 excludes business combinations of entities under common control from its scope. Ind AS 103 modifies paragraph 2 and adds paragraph 2B, and Appendix C gives the guidance for such combinations. The other options reverse or invent the position.

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