Auditor of Jumbo Ltd. has informed following to the Board of directors : (ii) Appointed Date has lost relevance if a company accounts the transaction in accordance with IND-AS 103. Examine the correctness of the observat

Relevance of Appointed date under IND-AS 103 Appointed date refers to the date with effect from which the assets and liabilities of the transferor company vests in the transferee company. The appointed date is specified in the scheme of merger itself and once the scheme is approved with the approval of the NCLT, the accounting takes place with effect from the appointed date. As per IND-AS 103 accounting for business combination should be done on the date on which the acquirer obtains control. Thus appointed date may not have relevance if IND AS 103 is adopted. Accordingly, the observations of the auditor appear to be correct.