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CMA Final · Corporate Financial Reporting · Borrowing Costs (Ind AS 23)

Which statement is correct about Ind AS 23 and IAS 23, based on the comparison given in the Indian standard?

Ind AS 23 adds paragraph 6A to guide how the adjustment in paragraph 6(e) is determined, because IAS 23 provides no such guidance. Transitional paragraphs 27-28 of IAS 23 are not carried into Ind AS 23, as transition is dealt with in Ind AS 101.

  1. AInd AS 23 has no paragraph 6A, as IAS 23 already gives guidance on the paragraph 6(e) adjustment
  2. BInd AS 23 adds paragraph 6A to give guidance on determining the adjustment referred to in paragraph 6(e), which IAS 23 does not provideCorrect
  3. CInd AS 23 contains the IAS 23 transitional provisions in paragraphs 27-28
  4. DInd AS 23 removes paragraph 6(e) altogether

Explanation

The comparison states that IAS 23 gives no guidance on how the paragraph 6(e) adjustment is determined, so paragraph 6A was added in Ind AS 23. The transitional paragraphs 27-28 were not included, since they sit in Ind AS 101.

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