CMA Final · Corporate Financial Reporting · Impairment of Assets (Ind AS 36)
Why is paragraph 2(f) deleted in Ind AS 36 while its number is retained?
Paragraph 2(f) is deleted because Ind AS 40 requires the cost model for investment property. The paragraph number is retained to remain consistent with IAS 36. The other reasons relate to different deletions, namely fair value measurement and transitional provisions.
- ABecause Ind AS 40 requires the cost model for investment propertyCorrect
- BBecause investment property is excluded from all Indian standards
- CBecause Ind AS 113 replaced the paragraph
- DBecause transitional provisions moved to Ind AS 101
Explanation
The official comparison text says paragraph 2(f) is deleted as Ind AS 40 requires the cost model. The number is retained for consistency with IAS 36. Ind AS 113 explains the deletion of paragraphs 25-27 and 5(b), and Ind AS 101 houses transitional provisions, so those options give the wrong reason.
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More Impairment of Assets (Ind AS 36) questions
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