9911796707
TMI BlogFirst-time Adoption of Indian Accounting StandardsX X X X Extracts X X X X X X X X Extracts X X X X ..... y its first Ind AS financial statements. 3 An entity's first Ind AS financial statements are the first annual financial statements in which the entity adopts Ind ASs, in accordance with Ind ASs notified under the Companies Act, 2013 and makes an explicit and unreserved statement in those financial statements of compliance with Ind ASs. 4 [Refer to Appendix 1] 4A [Refer to Appendix 1] 4B [Refer to Appendix 1] 5 This Ind AS does not apply to changes in accounting policies made by an entity that already applies Ind ASs. Such changes are the subject of: (a) requirements on changes in accounting policies in Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors; and (b) specific transitional requirements in other Ind ASs. Recognition and measurement Opening Ind AS Balance Sheet 6 An entity shall prepare and present an opening Ind AS Balance Sheet at the date of transition to Ind ASs. This is the starting point for its accounting in accordance with Ind ASs subject to the requirements of paragraphs D13AA and D22. Accounting policies 7 An entity shall use the same accounting policies in its opening Ind AS Balance Sheet and throughout all periods presented i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponent of equity, but are a different type of asset, liability or component of equity in accordance with Ind ASs; and (d) apply Ind ASs in measuring all recognised assets and liabilities. 11 The accounting policies that an entity uses in its opening Ind AS Balance Sheet may differ from those that it used for the same date using its previous GAAP. The resulting adjustments arise from events and transactions before the date of transition to Ind ASs. Therefore, an entity shall recognise those adjustments directly in retained earnings (or, if appropriate, another category of equity) at the date of transition to Ind ASs. 12 This Ind AS establishes two categories of exceptions to the principle that an entity's opening Ind AS Balance Sheet shall comply with each Ind AS: (a) paragraphs 14-17 and Appendix B prohibit retrospective application of some aspects of other Ind ASs. (b) Appendices C-D grant exemptions from some requirements of other Ind ASs. Exceptions to the retrospective application of other Ind ASs 13 This Ind AS prohibits retrospective application of some aspects of other Ind ASs. These exceptions are set out in paragraphs 14-17 and Appendix B. Estimates 14 An entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Comparative information 21 An entity's first Ind AS financial statements shall include at least three Balance Sheet, two Statements of profit and loss, two Statements of cash flows and two Statements of changes in equity and related notes, including comparative information for all statements presented. Non-IndAS comparative information and historical summaries 22 Some entities present historical summaries of selected data for periods before the first period for which they present full comparative information in accordance with Ind ASs. This Ind AS does not require such summaries to comply with the recognition and measurement requirements of Ind ASs. Furthermore, some entities present comparative information in accordance with previous GAAP as well as the comparative information required by Ind AS 1. In any financial statements containing historical summaries or comparative information in accordance with previous GAAP, an entity shall: (a) label the previous GAAP information prominently as not being prepared in accordance with Ind ASs; and (b) disclose the nature of the main adjustments that would make it comply with Ind ASs. An entity need not quantify those adjustments. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting policies or its use of the exemptions contained in this Ind AS, it shall explain the changes between its first Ind AS interim financial report and its first Ind AS financial statements, in accordance with paragraph 23, and it shall update the reconciliations required by paragraph 24(a) and (b). 27AA If an entity adopts the first time exemption option provided in accordance with paragraph D7AA, the fact and the accounting policy shall be disclosed by the entity until such time that those items of Property, plant and equipment, investment properties or intangible assets, as the case may be, are significantly depreciated, impaired or derecognised from the entity's Balance Sheet. 28 If an entity did not present financial statements for previous periods, its first Ind AS financial statements shall disclose that fact. Designation of financial assets or financial liabilities 29 An entity is permitted to designate a previously recognised financial asset as a financial asset measured at fair value through profit or loss in accordance with paragraph D19A. The entity shall disclose the fair value of financial assets so designated at the date of designation and their classification a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation of how, and why, the entity had, and then ceased to have, a functional currency that has both of the following characteristics: (a) a reliable general price index is not available to all entities with transactions and balances in the currency. (b) exchangeability between the currency and a relatively stable foreign currency does not exist. Interim financial reports 32 To comply with paragraph 23, if an entity presents an interim financial report in accordance with Ind AS 34 for part of the period covered by its first Ind AS financial statements, the entity shall satisfy the following requirements in addition to the requirements of Ind AS 34: (a) Each such interim financial report shall, if the entity presented an interim financial report for the comparable interim period of the immediately preceding financial year, include: (i) a reconciliation of its equity in accordance with previous GAAP at the end of that comparable interim period to its equity under Ind ASs at that date; and (ii) a reconciliation to its total comprehensive income in accordance with Ind ASs for that comparable interim period (current and year to date). The starting point for that reconci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Ind AS 116.] 39AC Appendix B, Foreign Currency Transactions and Advance Consideration of Ind AS 21 added paragraph D36 in context of foreign currency transactions and advance consideration and in paragraph D1, renumbered item (v) as (ua) and a new item (v) is added in its place. An entity shall apply that amendment when it applies Appendix B of Ind AS 21.] 31[39AD * 45[39AE Ind AS 117, Insurance Contracts, amended paragraphs B1 and D1, deleted the heading before paragraph D4 and paragraph D4, and after paragraph B12 added a heading and paragraph B13. An entity shall apply those amendments when it applies Ind AS 117.] 39AF Appendix C, Uncertainty over Income Tax Treatments, to Ind AS 12 added paragraph E8. An entity shall apply that amendment when it applies Appendix C to Ind AS 12.] 38[39AG Annual Improvements to Ind AS (2021), amended paragraph D1(f) and added paragraph D13A. An entity shall apply that amendment for annual reporting periods beginning on or after 1st April, 2022.] 41[39AH Deferred Tax related to Assets and Liabilities arising from a Single Transaction, amended paragraph B1 and added paragraph B14. An entity shall apply these amendments for annual reporting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts (paragraph B13); and] (i) deferred tax related to leases and decommissioning, restoration and similar liabilities (paragraph B14).] Derecognition of financial assets and financial liabilities B2 Except as permitted by paragraph B3, a first-time adopter shall apply the derecognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind ASs. For example, if a firsttime adopter derecognised non-derivative financial assets or non-derivative financial liabilities in accordance with its previous GAAP as a result of a transaction that occurred before the date of transition to Ind ASs, it shall not recognise those assets and liabilities in accordance with Ind ASs (unless they qualify for recognition as a result of a later transaction or event). B3 Despite paragraph B2, an entity may apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity's choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. Hedge accounting B4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ragraph C1 of this Ind AS. 37[Classification and measurement of financial instruments] B8 An entity shall assess whether a financial asset meets the conditions in paragraph 4.1.2 or the conditions in paragraph 4.1.2A of Ind AS 109 on the basis of the facts and circumstances that exist at the date of transition to Ind ASs. B8A If it is impracticable to assess a modified time value of money element in accordance with paragraphs B4.1.9B-B4.1.9D of Ind AS 109 on the basis of the facts and circumstances that exist at the date of transition to Ind ASs, an entity shall assess the contractual cash flow characteristics of that financial asset on the basis of the facts and circumstances that existed at the date of transition to Ind ASs without taking into account the requirements related to the modification of the time value of money element in paragraphs B4.1.9B- B4.1.9D of Ind AS 109. An entity shall disclose the carrying amount at the reporting date of the financial assets whose contractual cash flow characteristics have been assessed based on the facts and circumstances that existed at the date of transition to Ind ASs without taking into account the requirements related to the modifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertake an exhaustive search for information when determining, at the date of transition to Ind ASs, whether there have been significant increases in credit risk since initial recognition. If an entity is unable to make this determination without undue cost or effort paragraph B8G of this Ind AS applies. B8EB In order to determine the loss allowance on financial instruments initially recognised (or loan commitments or financial guarantee contracts to which the entity became a party to the contract) prior to the date of initial application, both on transition and until the derecognition of those items, an entity shall consider information that is relevant in determining or approximating the credit risk at initial recognition. In order to determine or approximate the initial credit risk, an entity may consider internal and external information, including portfolio information, in accordance with paragraphs B5.5.1-B5.5.6 of Ind AS 109. B8F When determining whether there has been a significant increase in credit risk since initial recognition, an entity may apply: (a) the requirements in paragraph 5.5.10 and B5.5.22-B5.5.24 of Ind AS 109; and (b) the rebuttable presumption in para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of transition to Ind ASs, provided that the information needed to do so had been obtained at the time of initially accounting for that loan. B12 The requirements and guidance in paragraphs B10 and B11 do not preclude an entity from being able to use the exemptions described in paragraphs D19-D19C relating to the designation of previously recognised financial instruments at fair value through profit or loss. 43[47[Insurance contracts B13 An entity shall apply the transition provisions in paragraphs C1-C24 and C28 in Appendix C of Ind AS 117 to contracts within the scope of Ind AS 117. The references in those paragraphs in Ind AS 117 to the transition date shall be read as the date of transition to Ind ASs.] Deferred tax related to leases and decommissioning, restoration and similar liabilities B14 Paragraphs 15 and 24 of Ind AS 12, Income Taxes exempt an entity from recognising a deferred tax asset or liability in particular circumstances. Despite this exemption, at the date of transition to Ind ASs, a first-time adopter shall recognise a deferred tax asset--to the extent that it is probable that taxable profit will be available against which the deductible temporary differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply Ind AS 103 retrospectively to a past business combination, this has the following consequences for that business combination: (a) The first-time adopter shall keep the same classification (as an acquisition by the legal acquirer, a reverse acquisition by the legal acquiree, or a uniting of interests) as in its previous GAAP financial statements. (b) The first-time adopter shall recognise all its assets and liabilities at the date of transition to Ind ASs that were acquired or assumed in a past business combination, other than: (i) some financial assets and financial liabilities derecognised in accordance with previous GAAP (see paragraph B2); and (ii) assets, including goodwill, and liabilities that were not recognised in the acquirer's consolidated Balance Sheet in accordance with previous GAAP and also would not qualify for recognition in accordance with Ind ASs in the separate Balance Sheet of the acquiree (see (f)-(i) below). The first-time adopter shall recognise any resulting change by adjusting retained earnings (or, if appropriate, another category of equity), unless the change results from the recognition of an intangible asset that was previously subsumed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capitalised leases acquired in a past business combination in which acquiree was a lessee, it shall capitalise those leases in its consolidated financial statements, as Ind AS 116, Leases, would require the acquiree to do in its Ind AS Balance Sheet. Similarly, if the acquirer had not, in accordance with its previous GAAP, recognised a contingent liability that still exists at the date of transition to Ind ASs, the acquirer shall recognise that contingent liability at that date unless Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, would prohibit its recognition in the financial statements of the acquiree. Conversely, if an asset or liability was subsumed in goodwill/capital reserve in accordance with previous GAAP but would have been recognised separately under Ind AS 103, that asset or liability remains in goodwill/capital reserve unless Ind ASs would require its recognition in the financial statements of the acquiree.] (g) The carrying amount of goodwill or capital reserve in the opening Ind AS Balance Sheet shall be its carrying amount in accordance with previous GAAP at the date of transition to Ind ASs, after the following two adjustments: (i) If req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopter may not have consolidated a subsidiary acquired in a past business combination (for example, because the parent did not regard it as a subsidiary in accordance with previous GAAP or did not prepare consolidated financial statements). The first-time adopter shall adjust the carrying amounts of the subsidiary's assets and liabilities to the amounts that Ind ASs would require in the subsidiary's Balance Sheet. The deemed cost of goodwill equals the difference at the date of transition to Ind ASs between: (i) the parent's interest in those adjusted carrying amounts; and (ii) the cost in the parent's separate financial statements of its investment in the subsidiary. (k) The measurement of non-controlling interests and deferred tax follows from the measurement of other assets and liabilities. Therefore, the above adjustments to recognised assets and liabilities affect non-controlling interests and deferred tax. C5 The exemption for past business combinations also applies to past acquisitions of investments in associates, interests in joint ventures and interests in joint operations in which the activity of the joint operation constitutes a business, as defined in Ind AS 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agraph D36).] An entity shall not apply these exemptions by analogy to other items. Share-based payment transactions D2 A first-time adopter is encouraged, but not required, to apply Ind AS 102 Share-based payment to equity instruments that vested before date of transition to Ind ASs. However, if a first-time adopter elects to apply Ind AS 102 to such equity instruments, it may do so only if the entity has disclosed publicly the fair value of those equity instruments, determined at the measurement date, as defined in Ind AS 102. For all grants of equity instruments to which Ind AS 102 has not been applied (eg, equity instruments vested but not settled before date of transition to Ind ASs, a firsttime adopter shall nevertheless disclose the information required by paragraphs 44 and 45 of Ind AS 102. If a first-time adopter modifies the terms or conditions of a grant of equity instruments to which Ind AS 102 has not been applied, the entity is not required to apply paragraphs 26-29 of Ind AS 102 if the modification occurred before the date of transition to Ind ASs. D3 A first-time adopter is encouraged, but not required, to apply Ind AS 102 to liabilities arising from share-based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lections for other assets or for liabilities.] D7AA Where there is no change in its functional currency on the date of transition to Ind ASs, a first-time adopter to Ind ASs may elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments in accordance with paragraph D21 and D21A, of this Ind AS. For this purpose, if the financial statements are consolidated financial statements, the previous GAAP amount of the subsidiary shall be that amount used in preparing and presenting consolidated financial statements. Where a subsidiary was not consolidated under previous GAAP, the amount required to be reported by the subsidiary as per previous GAAP in its individual financial statements shall be the previous GAAP amount. If an entity avails the option under this paragraph, no further adjustments to the deemed cost of the property, plant and equipment so determined in the opening balance sheet shall be made for transition adjustments that might arise fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the purposes of this paragraph, oil and gas assets comprise only those assets used in the exploration, evaluation, development or production of oil and gas. 24[D8B Some entities hold items of property, plant and equipment, right-of-use assets or intangible assets that are used, or were previously used, in operations subject to rate regulation. The carrying amount of such items might include amounts that were determined under previous GAAP but do not qualify for capitalisation in accordance with Ind ASs. If this is the case, a first-time adopter may elect to use the previous GAAP carrying amount of such an item at the date of transition to Ind ASs as deemed cost. If an entity applies this exemption to an item, it need not apply it to all items. At the date of transition to Ind ASs, an entity shall test for impairment in accordance with Ind AS 36 each item for which this exemption is used. For the purposes of this paragraph, operations are subject to rate regulation if they are governed by a framework for establishing the prices that can be charged to customers for goods or services and that framework is subject to oversight and/or approval by a rate regulator (as defined in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stead, the entity shall account for (including disclosure of information about) these leases as if they were short-term leases accounted for in accordance with paragraph 6 of Ind AS 116. (c) elect not to apply the requirements in paragraph D9B to leases for which the underlying asset is of low value (as described in paragraphs B3-B8 of Ind AS 116). Instead, the entity shall account for (including disclosure of information about) these leases in accordance with paragraph 6 of Ind AS 116. (d) exclude initial direct costs (see paragraph D9E) from the measurement of the right-of-use asset at the date of transition to Ind AS. (e) use hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease. D9E Lease payments, lessee, lessee's incremental borrowing rate, commencement date of the lease, initial direct costs and lease term are defined terms in Ind AS 116 and are used in this Standard with the same meaning.] D10-D11 [Refer to Appendix 1] Cumulative translation differences D12 Ind AS 21 requires an entity: (a) to recognise some translation differences in other comprehensive income and accumulate these in a separate compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) deemed cost. The deemed cost of such an investment shall be its: (i) fair value at the entity's date of transition to Ind ASs in its separate financial statements; or (ii) previous GAAP carrying amount at that date. A first-time adopter may choose either (i) or (ii) above to measure its investment in each subsidiary, joint venture or associate that it elects to measure using a deemed cost. Assets and liabilities of subsidiaries, associates and joint ventures D16 If a subsidiary becomes a first-time adopter later than its parent, the subsidiary shall, in its financial statements, measure its assets and liabilities at either: (a) the carrying amounts that would be included in the parent's consolidated financial statements, based on the parent's date of transition to Ind ASs, if no adjustments were made for consolidation procedures and for the effects of the business combination in which the parent acquired the subsidiary (this election is not available to a subsidiary of an investment entity, as defined in Ind AS 110, that is required to be measured at fair value through profit or loss); or (b) the carrying amounts required by the rest of this Ind AS, based on the subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignation of previously recognised financial instruments D19 Ind AS 109 permits a financial liability (provided it meets certain criteria) to be designated as a financial liability at fair value through profit or loss. Despite this requirement an entity is permitted to designate, at the date of transition to Ind ASs, any financial liability as at fair value through profit or loss provided the liability meets the criteria in paragraph 4.2.2 of Ind AS 109 at that date. D19A An entity may designate a financial asset as measured at fair value through profit or loss in accordance with paragraph 4.1.5 of Ind AS 109 on the basis of the facts and circumstances that exist at the date of transition to Ind ASs. D19B An entity may designate an investment in an equity instrument as at fair value through other comprehensive income in accordance with paragraph 5.7.5 of Ind AS 109 on the basis of the facts and circumstances that exist at the date of transition to Ind ASs. D19C For a financial liability that is designated as a financial liability at fair value through profit or loss, an entity shall determine whether the treatment in paragraph 5.7.7 of Ind AS 109 would create an accounting misma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abilities at the date of transition to Ind ASs determined under the entity's previous GAAP. 14[Financial assets or intangible assets accounted for in accordance with Appendix D, Service Concession Arrangements to Ind AS 115] D22 A first-time adopter may apply the following provisions while applying the 15[Appendix D to Ind AS 115:] i) Subject to paragraph (ii), changes in accounting policies are accounted for in accordance with Ind AS 8, i.e. retrospectively, except for the policy adopted for amortization of intangible assets arising from service concession arrangements related to toll roads recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.. ii) If, for any particular service arrangement, it is impracticable for an operator to apply this Appendix retrospectively at the date of transition to Ind ASs, it shall: (a) recognise financial assets and intangible assets that existed at the date of transition to Ind ASs; (b) use the previous carrying amounts of those financial and intangible assets (however previously classified) as their carrying amounts as at that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sheet. D30 When the functional currency normalisation date falls within a 12-month comparative period, the comparative period may be less than 12 months, provided that a complete set of financial statements (as required by paragraph 10 of Ind AS 1) is provided for that shorter period. Joint arrangements D31 [Refer to Appendix 1] Joint ventures - transition from proportionate consolidation to the equity method D31AA When changing from proportionate consolidation to the equity method, an entity shall recognise its investment in the joint venture at transition date to Ind ASs. That initial investment shall be measured as the aggregate of the carrying amounts of the assets and liabilities that the entity had previously proportionately consolidated, including any goodwill arising from acquisition. If the goodwill previously belonged to a larger cashgenerating unit, or to a group of cash-generating units, the entity shall allocate goodwill to the joint venture on the basis of the relative carrying amounts of the joint venture and the cash-generating unit or group of cash generating units to which it belonged. D31AB The balance of the investment in joint venture at the date of tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the arrangement in accordance with paragraph 38 of Ind AS 28 and recognise its share of each of the assets and the liabilities in respect of its interest in the joint operation, including any goodwill that might have formed part of the carrying amount of the investment. D31AH An entity shall determine its interest in the assets and liabilities relating to the joint operation on the basis of its rights and obligations in a specified proportion in accordance with the contractual arrangement. An entity measures the initial carrying amounts of the assets and liabilities by disaggregating them from the carrying amount of the investment at the date of transition to Ind ASs on the basis of the information used by the entity in applying the equity method. D31AI Any difference arising from the investment previously accounted for using the equity method together with any other items that formed part of the entity's net investment in the arrangement in accordance with paragraph 38 of Ind AS 28, and the net amount of the assets and liabilities, including any goodwill, recognised shall be: a. offset against any goodwill relating to the investment with any remaining difference adjusted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alances shall be depreciated or amortised over the remaining expected useful life of the identified component of the ore body to which each predecessor stripping asset balance relates. If there is no identifiable component of the ore body to which that predecessor stripping asset relates, it shall be recognised in opening retained earnings at the transition date to Ind ASs. Designation of contracts to buy or sell a non-financial item D33 Ind AS 109 permits some contracts to buy or sell a non-financial item to be designated at inception as measured at fair value through profit or loss (see paragraph 2.5 of Ind AS 109). Despite this requirement an entity is permitted to designate, at the date of transition to Ind ASs, contracts that already exist on that date as measured at fair value through profit or loss but only if they meet the requirements of paragraph 2.5 of Ind AS109 at that date and the entity designates all similar contracts. 16[Revenue D34 A first-time adopter may apply the transition provisions in paragraph C5 of Ind AS 115. In those paragraphs references to the 'date of initial application' shall be interpreted as the beginning of the first Ind AS reporting period. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appendix is not a part of the Ind AS 101, First-time Adoption of Indian Accounting Standards. The purpose of this Appendix is only to highlight major differences between Ind AS 101 and corresponding International Financial Reporting Standard (IFRS) 1, First-time Adoption of International Financial Reporting Standards. Major differences between Indian Accounting Standard (Ind AS) 101 Firsttime Adoption of Indian Accounting Standards and IFRS 1 1. Paragraph 3 of Ind AS 101 specifies that an entity's first Ind AS financial statements are the first annual financial statements in which the entity adopts Ind ASs in accordance with Ind ASs notified under the Companies Act, 2013 whereas IFRS 1 provides various examples of first IFRS financial statements. 2. Paragraph 4, 4A, 4B, 23A and 23B of IFRS 1 provide various examples of instances when an entity does not apply this IFRS. Ind AS 101 does not provide the same. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph number is retained in Ind AS 101. 3. IFRS 1 defines previous GAAP as the basis of accounting that a first-time adopter used immediately before adopting IFRS. However, Ind AS 101 defines previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transitional provisions of IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments; (v) Paragraph D31 includes the transitional provisions of IFRS 11 Joint Arrangements; (vi) Paragraph D32 includes the transitional provisions of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine; and (vii) Paragraph D34 and D35 includes the transitional provisions of IFRS 15 Revenue from contracts customer. 8. IFRS 1 provides for various optional exemptions that an entity can seek while an entity transitions to IFRS from its previous GAAP. Similar provisions have been retained under Ind AS 101. However, there are few changes that have been made, which can be broadly categorized as follows: (a) Elimination of effective dates prior to transition date to Ind ASs. IFRS 1 provides for various dates from which a standard could have been implemented. For example, Paragraph D2 of IFRS 1 provides that an entity is encouraged, but not required, to apply IFRS 2 Share-based Payment to equity instruments that were granted on or before 7 November 2002 or to instruments that were granted after 7 November 2002 and vested before the later of (a) the date of transition to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances to measure such assets or operations at the lower of carrying value and fair value less cost to sell. 33[9. Paragraphs E1-E2 of Appendix E of IFRS 1 provides 'Short-term exemptions from IFRSs', however Ind AS 101 does not provide the aforesaid short-term exemptions. In order to maintain consistency with paragraph numbers of IFRS 1, the same have been retained in Ind AS 101.] 7[10. IFRS 9 Financial Instruments is effective from annual period beginning on or after January 1, 2018. As the above said standard is not yet effective consequential amendments due to this standard have not been incorporated in current version of IFRS 1. However, corresponding Ind AS 109, Financial Instruments has been issued with consequential amendments in other Ind ASs including Ind AS 101. Accordingly, its consequential amendments to Ind AS 109 have been incorporated in Ind AS 101.] 11. Different terminology is used in Ind AS 101, e.g., the term 'Balance Sheet' is used instead of 'Statement of financial position' and 'Statement of profit and loss' is used instead of 'Statement of comprehensive income'. 50[12. The following paragraph numbers appear as 'deleted' in IFRS 1. In order to maintain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for liabilities." 4. Substituted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 before it was read as, "Financial assets or intangible assets accounted for in accordance with Appendix C, Service Concession Arrangements to Ind AS 115 D22 A first-time adopter may apply the following provisions while applying the Appendix C to Ind AS 115:" 5. Omitted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 before it was read as, "Revenue from contracts with customers D34 A first-time adopter may use one or more of the following practical expedients when applying Ind AS 115 retrospectively: (a) for completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period; (b) for completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods; and (c) for all reporting periods presented before the beginning of the first Ind AS reporting period, an entity need not disclose the amount of the transaction price allocated to the remaining performance obligations and an expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Inserted vide F. No. 01/01/2009-CL-V(Part VI) - Dated 28-03-2018, w.e.f. 1st day of April, 2018, 14. Substituted vide F. No. 01/01/2009-CL-V(Part VI) - Dated 28-03-2018, w.e.f. 1st day of April, 2018, before it was read as, "4[Financial assets or intangible assets accounted for in accordance with Appendix A, Service Concession Arrangements to Ind AS 11''" 15. Substituted vide F. No. 01/01/2009-CL-V(Part VI) - Dated 28-03-2018, w.e.f. 1st day of April, 2018, before it was read as, "Appendix A to Ind AS 11" 16. Inserted vide F. No. 01/01/2009-CL-V(Part VI) - Dated 28-03-2018, w.e.f. 1st day of April, 2018, 17. Substituted vide F. No. 01/01/2009-CL-V(Part VI) - Dated 28-03-2018, w.e.f. 1st day of April, 2018, before it was read as, "6[Transfers of Assets from Customers D36 An entity shall apply Appendix C of Ind AS 18 prospectively to transfers of assets from customers received on or after the transition date. Earlier application is permitted provided the valuations and other information needed to apply the Appendix to past transfers were obtained at the time those transfers occurred. An entity shall disclose the date from which the Appendix D of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acquiree. Conversely, if an asset or liability was subsumed in goodwill/capital reserve in accordance with previous GAAP but would have been recognised separately under Ind AS 103, that asset or liability remains in goodwill/capital reserve unless Ind ASs would require its recognition in the financial statements of the acquiree." 22. Substituted vide NOTIFICATION No. [F. No. 01/01/2009-CL-V-(Part VII)] dated 30-03-2019 w.e.f. 01-04-2019 before it was read as "(d) leases (paragraphs D9 and D9AA);" 23. Inserted vide NOTIFICATION No. [F. No. 01/01/2009-CL-V-(Part VII)] dated 30-03-2019 w.e.f. 01-04-2019 24. Substituted vide NOTIFICATION No. [F. No. 01/01/2009-CL-V-(Part VII)] dated 30-03-2019 w.e.f. 01-04-2019 before it was read as "D8B Some entities hold items of property, plant and equipment or intangible assets that are used, or were previously used, in operations subject to rate regulation. The carrying amount of such items might include amounts that were determined under previous GAAP but do not qualify for capitalisation in accordance with Ind ASs. If this is the case, a first-time adopter may elect to use the previous GAAP carrying amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and liability at fair value on that date; and any difference between those fair values is recognised in retained earnings." 28 Inserted vide NOTIFICATION No. [F. No. 01/01/2009-CL-V-(Part VII)] dated 30-03-2019 w.e.f. 01-04-2019 29 Substituted vide NOTIFICATION No. [F. No. 01/01/2009-CL-V-(Part VII)] dated 30-03-2019 w.e.f. 01-04-2019 before it was read as "12. Following paragraph numbers appear as 'deleted' in IFRS 1. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph numbers are retained in Ind AS 101: (i) Paragraph 19 (ii) Paragraph D1(e) (iii) Paragraph D1(o) (iv) Paragraph D10-11 (v) Paragraph D 24 (vi) Paragraph D 31" 30. Substituted vide NOTIFICATION No. [F. No. 01/01/2009-CL-V-(Part VII)] dated 30-03-2019 w.e.f. 01-04-2019 before it was read as "8[13. IAS 40, Investment Property permits both cost model and fair value model (except in some situations) for measurement of investment properties after initial recognition. Ind AS 40, Investment Property permits only the cost model. As a consequence, paragraph 30 is amended and paragraph D7 (a) is deleted. 18[14. Paragraphs 34 to 39W and 39Y to 39AB have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B10-B12)." 43. Inserted vide Notification G.S.R. 242(E), dated 31.03.2023 w.e.f. 01.04.2023 44. Omitted vide Notification G.S.R. 242(E), dated 31.03.2023 w.e.f. 01.04.2023 "(ii) Paragraph D9 includes the transitional provisions of IFRIC 4 Determining whether an Arrangement contains a Lease;" 45. Substituted vide Notification No. G.S.R. 492 (E) dated 12-08-2024 before it was read as, "39AE * (*Refer Appendix 1)" 46. Substituted vide Notification No. G.S.R. 492 (E) dated 12-08-2024 before it was read as, "(h) [Refer Appendix 1]; and" 47. Substituted vide Notification No. G.S.R. 492 (E) dated 12-08-2024 before it was read as, "B13 [Refer Appendix 1]" 48. Omitted vide Notification No. G.S.R. 492 (E) dated 12-08-2024 before it was read as, "(b) insurance contracts (paragraph D4);" 49. Omitted vide Notification No. G.S.R. 492 (E) dated 12-08-2024 before it was read as, "Insurance contracts" 50. Substituted vide Notification No. G.S.R. 492 (E) dated 12-08-2024 before it was read as, "29[12. Following paragraph numbers appear as 'deleted' in IFRS 1. In order to maintain consistenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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