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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

While comparing Ind AS 105 with IFRS 5, a CA Final student notes that paragraph 5(d) of IFRS 5, dealing with non-current assets accounted at fair value under the investment property standard, is deleted in Ind AS 105. What is the reason for this deletion?

Paragraph 5(d) of IFRS 5 is deleted because Ind AS 40 prohibits the fair value model for investment property. Since no investment property is carried at fair value in Ind AS, the paragraph has no application in the Indian context.

  1. AInd AS 40 prohibits the use of the fair value model, so the paragraph is not relevantCorrect
  2. BInd AS 105 does not apply to investment property of any kind
  3. CInvestment property is always measured at cost less held-for-sale adjustments under Ind AS 2
  4. DFair value gains on investment property are taken to other comprehensive income in India

Explanation

The Ind AS 105 comparison with IFRS 5 states that since Ind AS 40 prohibits the fair value model, paragraph 5(d) is deleted. Option B is wrong because investment property carried at cost can still be held for sale under Ind AS 105.

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