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Under Ind AS 108, the term "chief operating decision maker" (CODM) refers to:
AA FUNCTION that allocates resources and assesses segment performance — it may be a person, a group of executives, or the Board, regardless of title
BThe Chief Financial Officer of the entity by default
CThe audit committee of the Board of Directors
DThe Chief Executive Officer of the entity by default
Answer & Solution
Correct answer: A. A FUNCTION that allocates resources and assesses segment performance — it may be a person, a group of executives, or the Board, regardless of title
Para 7 of Ind AS 108 clarifies that CODM identifies a function — not a specific title or person. It is often the CEO or COO, but can equally be a management committee, a group of executive directors, or another decision-making body. Defaulting to CEO/CFO is wrong; the audit committee is a governance, not resource-allocation, function.
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