1st time adoption of ifrs

8/13/2019 1st Time Adoption of Ifrs

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Ind AS 1st Time Adoption Challenges

Compiled By Ca Yagnesh [email protected]

+09820133227,0932244770


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Ind AS 1 : First Time Adoption of Ind AS

1 04?

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Ind-AS 101 : Snap ShotTotal Clauses : 40

Appendices forming integral part of the StandardA = Defined terms.

B = Mandatory Exceptions to the retrospectiveapplication of other IndAs.C = Voluntary exemptions for Business

Combinations.D = Voluntary Exemptions from other Ind-AS.

E = Short-term exemptions from Ind-AS.

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INDAS 101 : Mapping Conversion1.What is 1st INDAS Financial Statements

2. Ans. to Q1 determine Date of Transition3. Prepare 1st INDAS Financial Statements

4. Avail of Voluntary Exemptions & Becareful of Mandatory Exceptions.5. Select Appropriate Policies.6. Differences to be recognised in Retained

or Revaluation Reserve or Goodwill.Compiled & Presented By CA Yagnesh Desai


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Steps in Transition to INDAS:

Selection of accounting policies that comply withINDAS. Preparation of an opening INDAS balance sheet at the

date of transition to INDAS as the starting point forsubsequent accounting under INDAS.

Recognize all assets and liabilities whose recognition is

required under INDAS; Derecognize items as assets or liabilities if INDAS does notpermit such recognition; Reclassify items in the financial statements in accordance withINDAS; and Measure all recognized assets and liabilities according toprinciples set forth in INDAS.

Presentation and disclosure in an entitys first INDASfinancial statements and interim financial reports.


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Ind AS 101 : Objective

Interim Financial Statements only if IAS 34 is applicable or followed by entity.

To ensure that an entitysfirst INDAS financial statements, and itsinterim financial reports for part of the period covered by thosefinancial statements, contain high quality information that:

(a) is transparent for users and comparable over all periods

presented;

(b) provides a suitable starting point for accounting in accordance

with International Financial Reporting Standards (INDASs); and(c) can be generated at a cost * that does not exceed the benefits.

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How An Entity Adopts INDAS ?

Nothing like Subject to or Except for

Ind AS 101 applies when an entity adopts Ind AS

for the first time by an explicit andunreserved statement of compliance with

INDASs.

This means compliance with ALL INDASsPartial Compliance is not enough to make anentity INDAS Compliant.

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Ind AS 101 : DefinitionsFirst Time Adopter : (FTA) An entity is referred to as a first-time adopter in the period in which it presents its First INDAS

financial statements.

Date of Transition : The beginning of the earliest period for

which an entity presents full comparative information underINDAS in its First INDAS Financial Statements.

First IND AS Financial Statement : The first annual financialstatements in which an entity adopts INDAS by making anexplicit and unreserved statement of compliance with IND AS .

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IND-AS 101 : DefinitionsOpening IND AS statement of financialposition: An entitys statement of financialposition at the date of transition to INDAS

First IND AS Reporting Period :The latestreporting period covered by an entitys firstIND AS financial statements.

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IFRS 1 : Opening Ind AS Statement of Financial Position

An entitys statement of financial position at the dateof transition to Ind AS.-prepared in accordancewith the requirements of IND AS 1 as of the date oftransition to Ind AS.

Under Ind AS 101 Opening Ind AS Statement ofFinancial Position is ALSO to be presented with theFirst Time Ind AS Statements.

This is the starting point for its accounting in accordancewith Ind AS.10


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Which Accounting Policies to follow ?Use the same accounting policies in its Opening Ind ASstatement of financial position

and

Throughout all periods presentedin its firstInd ASfinancial statements.

Those accounting policies shall comply with each Ind ASeffective at the end of its first Ind AS reportingperiod with some exceptions. Para 13-19 &Appendices B-E.11


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Which Accounting Policies to be applied ?

Use Same

Accounting

Policies

In its opening Ind AS statement offinancial position

And Throughout all the Comparativeperiods presented

And , (Of course) in its First Ind ASFinancial Statements

Those accounting policies shall comply with each Ind ASeffective at the end of its first Ind AS reporting

period, with some exceptions. Para 13-19 &

Appendices B-E.


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Accounting Policies - AnalysisApplication of Accounting policies effective at the

date of First Ind AS reporting period

Even if such policies were not operative atthe date of transition. !!!!

Subject , of course , to those Mandatory exceptionsand Voluntary Exceptions.

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First Time Adoption of Ind AS

General

Requirements

Specific

To comply with each Ind ASeffective at theend of its first Ind ASreporting period.

To recognise, De-recognise,measure & re-classify in the

opening Ind AS statement offinancial position that itprepares------------------->

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IndAS 101 : Specific Requirement

Subject to limited Exemptions & Mandatory Exceptions >

(a)recognise all assets and liabilities whose recognition isrequired by Ind ASs;

(b) not recognise items as assets or liabilities if Ind ASs do notpermit such recognition;

(c) Reclassify items that it recognised under previous GAAP asone type of asset, liability or component of equity, but area different type of asset, liability or component of equity

under Ind ASs; and(d) apply Ind ASs in measuring all recognised assets and

liabilities.15


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Recognise

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Defined benefit pension plans (Ind AS 19)

Deferred taxation (Ind AS 12) Assets and liabilities under IFRIC 1 De-

commissioning Liability Provisions where there is a legal or

construction obligation (Ind AS 37)

Derivative financial instruments (Ind AS 39) Share-based payments (Ind AS 102)


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Provisions where there is no legal or constructive

obligation (e.g., general reserves, )

Internally generated intangible assets (Ind AS 38)

Deferred tax assets where recovery is not probable (IndAS 12)

Provision for Dividend ( Ind AS10)

Preliminary & Pre-Operative expenses.

De Recognise


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Classify

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Investments accounted for in accordance with Ind AS 39

Certain financial instruments previously classified as

equity

Any assets and liabilities that have been offset where the

criteria for offsetting in

Ind AS are not metfor example, the offset of aninsurance recovery against a provision

Noncurrent assets held-for-sale (IndAS 105)

Non-controlling interest (Ind AS 27)


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Measure ( rather remeasure !!!)

Prepared & Presented By CA Yagnesh [email protected]

Receivables (Ind AS 18)

Inventory (IndAS 2) Employee benefit obligations (Ind AS

19) Deferred taxation (Ind AS 12)

Financial instruments (Ind AS 39)

Investment Property ( Ind AS 40)Property Plant & Equipment (Ind AS 16)


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Ind AS 1 : Exemptions & Exceptions

Exemptions & Exceptions discussed in details later

Limited exemptions from these requirements in specified

areas where the cost of complying with them would be likelyto exceed the benefits to users of financial statements.

Also prohibits retrospective application of Ind-AS insome areas, particularly where retrospective application

would require judgements by management about past

conditions after the outcome of a particulartransaction is already known.

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Ind-AS 101 : ApplicabilityAn entity shall apply this IndAS in:

(a) its first Ind-As financial statements;and(b) each interim financial report, if any,that it presents in accordance with Ind AS

34 Interim Financial Reporting for part of theperiod covered by its first IndAS financial

statements.21


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IND AS 101 Comparatives

An option has been given under IndAS 101 to an entity not to givecomparatives as per Ind AS


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All Documents as

per Ind-As 101 ,based on Policies@ 31.3.2012

1st April,

2010

31st March

2011

31st March

2012

Balance Sheet Yes Yes Yes

Profit or LossAccount

No Yes Yes

Cash FlowStatements

No Yes Yes

Statement of Changes

in Equity

No Yes Yes

Notes andComparative

Information

No Yes Yes


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Ind-AS101 : First Time Adoption31st March2010

1st April 2010 31st March2011

31st March2012

Local GAAP Ind AS Local PublishedInd AS

Published Presented with

FinancialStatements of31st March

2012

Ind AS

Presented withFinancialStatements of

31st

March2012

Published alongwith Statement ofFinancial Positionas at 31st

March,2011 & as

at 1st April,2010

Prepared & Presented By CA Yagnesh Desai

[email protected]


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Effect ofTransition on

FinancialPosition

FinancialPerformance Cash Flows


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Reconciliations an entitys first Ind-AS financial statements

shall include:

(a) reconciliations of its equity reported in accordance withprevious GAAP to its equity in accordance with Ind-ASs for

both of the following dates:(i) the date of transition to Ind ASs; and

(ii) the end of the latest period presented in the entitys most

recent annual financial statements in accordance withprevious GAAP.

Equity Under Local

GAAP on 31.3.2010Reconciled with

Equity Under IFRS on

31.3.2011.

Equity Under IFRS as

on 1.4.2010


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(b) a reconciliation to its totalcomprehensive income in accordance withInd-As for the latest period in the entitys

most recent annual financial statements.

The starting point for that reconciliation

shall be total comprehensive income inaccordance with previous GAAP for thesame period or, if an entity did not report

such a total, profit or loss under previousGAAP.


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Recognition or reversal of impairment lossesfor the first-time in preparing its opening Ind-AS statement of financial position.

Disclosures that Ind AS 36 Impairment of Assetswould have required if the entity had recognisedthose impairment losses or reversals in the

period beginning with the date of transition toIFRSs.


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Transition Adjustments

RetainedEarnings

Goodwill

Another

category ofEquity

E

xception

Adjustment to Intangible Assets

Tax Impact

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General Rule Retrospective Application

Exceptions to the retrospectiveapplication of other IFRSs.

This Ind-AS prohibits retrospectiveapplication of some aspects of other Ind ASs.These exceptions are set out in paragraphs 1417 (Estimates) and Appendix B. ( Ind-AS1.13)

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Ind AS 1 : Mandatory Exceptions..

from Retrospective Applications , containedin Appendix to Ind-As 101

De-recognition of financial assets andliabilities

Hedge accounting

Non Controlling Interest

Para 14 -17 of Ind-AS Estimates.

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IFRS 1 : Mandatory Exceptions..

(d) classification and measurement offinancial assets (paragraph B8); and

(e) embedded derivatives (paragraph B9).

These two are additional exceptions added in 2011edition.

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Estimates - Hindsight prohibited

Estimates in accordance with IndAS at the

date of transition to Ind-As shall beconsistent with estimates made for the samedate in accordance with previous GAAP(after adjustments to reflect any differencein accounting policies),unless there is

objective evidence that those estimateswere in error.

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Estimates - Hindsight prohibited

In other words, estimates made by theentity in accordance with local GAAP shallnot be changes in view of the developmentsafter the transition date.

For example, an entity made provision on31stMarch,2011 , for Rs. 1 lakh. By the time

the entity prepares 1st

Ind-AS FinancialStatements the said liability was settledfor Rs. 80,000.00

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Estimates - Illustration

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How much should the provision be measured at when an entity

make in the 1st Ind-As Financial Statement prepared on 1st

April,2011 ?

A.Rs. 80,000 or B. 1,00,000

The Answer is B,

A.The entity should not take into account the developments

after 1st April,2011 while preparing opening Ind-As Balance

Sheet as on 1st April,2011. Such information to be treated asnon-adjusting events after the reporting period in accordance

with Ind-AS 10 Events after the Reporting Period.


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Estimates

Information received after the date of transition to

IFRSs

About estimates that it had made under previousGAAP.

To be treated as non-adjusting events after thereporting period in accordance with Ind-AS 10 Events

after the Reporting Period.

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Estimates II

Estimates made under previous GAAP needs to berevised to comply with Ind-AS

For Example a provision made for Warranties butat nominal value under previous GAAP , now needto be discounted under Ind-AS

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Estimates Not Required under Previous

GAAP but Required under IND ASWill reflect the conditions at the date of Transition

For Example ,the provision on opening balance sheet for anonerous rental contract in a foreign operation should becalculated using

Rental rates

Interest rates and

Exchange rates

Prevailing as at the date of the Transition.38


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These requirements also apply

to a comparative period presented in anentitys first Ind-AS financial statements,

in which case the references to the date of

transition to Ind-As

are replaced by references to the end of

that comparative period. i.e., 31stMarch,2011.


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ESTIMATEREQUIRED BY

PREVIOUS GAAP

ESTIMATES SUMMARY

EVIDENCE OFERROR

USE PREVIOUSESTIMATE &PREVIOUS

CALCULATIONS

USE PREVIOUSESTIMATE &

ADJUSTCALCULATIONS

TO REFLECTINDAS

MAKE ESTIMATEREFLECTING

CONDITIONS ATRELEVANT DATE

CALCULATIONCONSISTENT

WITH INDAS?

Yes No

No NoYes Yes

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Source


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Voluntary Exemptions : Implications

Entity is exempt from makingretrospective calculations to make thetransition simpler. In all 18 VoluntaryExemptions.

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Voluntary Exemptions General

An entity may elect to use one or more of the

following exemptions:

(a) Business Combination C

(b) Share-based payment transactions (D2 D3)

(c) Insurance contract (D4)(d) Fair value or revaluation as deemed cost(D5-8)

(e) Leases (D9)

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Voluntary Exemptions - General

(f) employee benefits (D10-D11);

(g) cumulative translation differences (D12 -D13);

(h) investments in subsidiaries, jointly

controlled entities and associates (D14-D15);(i) assets and liabilities of subsidiaries,associates and joint ventures (D16-D17);

(j) compound financial instruments (D18);

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An entity shall not apply these exemptions by analogy to other

items.

(k) designation of previously recognised financialinstruments (D19);

(l) fair value measurement of financial assets or financialliabilities at initial recognition (D20);

(m) decommissioning liabilities included in the cost of

property, plant and equipment (D21);

(n) financial assets or intangible assets accounted for inaccordance with IFRIC 12 Service Concession

Arrangements (D22);

(o) borrowing costs (D23).

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An entity shall not apply these exemptions by analogy to other

items.

(p) transfers of assets from customers (paragraph D24).

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(q) extinguishing financial liabilities with equityinstruments (paragraph D25);

and

(r) severe hyperinflation (paragraphs D26D30).


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VE Insurance Contracts INDAS 104

A first-time adopter may apply thetransitional provisions in Ind -AS104Insurance Contracts.

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VE Fair Value or Revaluation as Deemed Cost

Disclosure as per Para 30 of Ind AS 101

Plant Property & Equipment

Fair Value as the deemedcost of that asset Revaluation at or before thedate of transition as thedeemed cost of that asset

Revaluation broadlycomparable to fair value orcost of depreciated cost in

accordance with Ind AS.

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VE I bl A I bl A


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VE : Intangible Asset & Intangible Assets

Investment Property Intangible Assets

If Entity follows CostModel, meaning if Fair

Value Model is followed ,this option is notallowed.

If IA meets he recognitioncriteria under Ind AS 38,i.e. cost measured reliablyAND criteria for

revaluation.

Same as the Plant, Property and equipment

An entity shall not use these elections forother assets or for liabilities.

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A first-time adopter may elect to continue with the

carrying value for all of its property, plant andequipment as recognised in the financial statementsas at the date of transition measured as per the

previous GAAP and use that as its deemed cost asat date of transition after making necessaryadjustments for the decommissioning cost.

This provision equally applies to Intangible Assetsand Investment properties.

Additional Treatment under Ind-AS 101


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Compiled & Presented By CA Yagnesh Desai

Class Land Bldg Plant

Items 20 25 100Its One-OffExercise

Post IFRS Revaluation Cost Cost

OnTransition 10 20 70

Can be Cherry Pick

PPE


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PPE

If depreciation methods and rates inaccordance with previous GAAP differs from

those that would be acceptable in accordancewith IndAS and those differences have amaterial effect on the financial statements,

The entity adjusts accumulated depreciation

in its opening Ind AS statement of financialposition retrospectively so that it complieswith Ind AS.

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VE L I d AS 17


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VE :Lease Ind AS 17

IFRIC 4 has been deferred by MCA

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VE E l B fi


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VE : Employee Benefits

A first-time adopter may elect to recognise all

cumulative actuarial gains and losses at the date oftransition to Ind AS, even if it uses the corridorapproach for later actuarial gains and losses.

If a first-time adopter uses this election, it shall

apply it to all plans.

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The Interaction Between Employee benefits and The Business


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p yCombinations exemptions

Apply Employee Benefitsexemption?

NoWas plan acquired in

business combination ?

Apply Business combinationsexemption ?

Yes

Yes

Yes

NoNo

The past acquisitionaccounted for underprevious GAAP and the

pension liability recognisedat the date of acquisition isgrandfathered INDAS 19. isapplied from the date ofacquisition

Recomputecorridor fromthe date plan

was established.

Restate the pastacquisition inaccordance with IFRS 3 INDAS 19 applies at

the acquisition date(i.e. benefit planincluded in the pastacquisition are restatedaccording to (INDAS

19)

Recognise allcumulativeactuarial gains

and losses at thedate of transitionand apply the corridorprospectively.54

VE C l ti T l ti Diff


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VE : Cumulative Translation Differences

Ind AS 21 The Effects of Changes in Foreign ExchangeRates) requires an entity:

to recognise some translation differences in othercomprehensive income and accumulate these in acomponent of equity

to transfer, on disposal, the cumulative translationdifferences for foreign operations to profit or loss as

part of the gain or loss on disposal55

VE C l ti T iti l Diff


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VE : Cumulative Transitional DifferencesA first-time adopter is exempted from a transfer of thecumulative translation adjustment that existed on the date oftransition to Ind AS.

Upon Exercise of this exemption the cumulative translationadjustment for all foreign operations would be deemed to bezero at the date of transition to Ind AS

The gain or loss on subsequent disposal of any foreign

operation should exclude translation differences thatarose before the date of transition to Ind AS, butwould include all subsequent translation adjustments.

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Investments in subsidiaries, jointly controlled entities


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, j y

and associates In Separate Financial Statements

Cost Ind-AS39

Cost or

Deemed Cost which can be :-

Fair Value as per Ind-AS 39 or

Previous GAAP Carrying Amount

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VE : Assets and Liabilities of Subsidiaries


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VE : Assets and Liabilities of Subsidiaries,

associates and joint ventures.

Key factor : Who adopts IFRS\ Ind-AS first

Parent or

Subsidiary .

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Parent Subsidiary


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Parent - Subsidiary

Consider Income tax & Non Controlling Interest

A first-time adopter consolidates all subsidiaries (asdefined in Ind-AS 27), unless Ind-AS 27 requires

otherwise.If a first-time adopter did not consolidate a subsidiary inaccordance with previous GAAP, then in its consolidated

statements :Treatment depending on who has adopted Ind AS First.

If Subsidiary was Acquired If Subsidiary was not acquiredParent Recognises Goodwill Parent does not recognised

Goodwill59

Parent adopts in 2009 Subsidiary in 2011


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Parent adopts in 2009 Subsidiary in 2011Parents Consolidated FinancialStatements

Subsidiarys Separate FinancialStatements.

However, the fact that subsidiarybecomes a first-timeadopter in 2011 does not change thecarrying amounts of its assets and

liabilities in parents consolidatedfinancial statements.

The carrying amounts of itsassets and liabilities are the same in

both its opening INDAS statement offinancial position at 1 January 2010

and parent Ns consolidatedstatement of financial position(except for adjustments forconsolidation procedures) and

are based on parent s date oftransition to Ind-AS. OR

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Parents ConsolidatedFinancial Statements

Subsidiarys SeparateFinancial Statements.

The fact that subsidiary Obecomes a first-timeadopter in 2011 does not

change the carryingamounts of its assets andliabilities in parent Nsconsolidated financialstatements

OR ..Measure all itsassets or liabilities

based on its own dateof transition to

Ind AS (1 January2010).

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Parent adopts in 2011Subsidiary in 2009


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Parent adopts in 2011Subsidiary in 2009Parents Consolidated FinancialStatements

Subsidiarys Separate FinancialStatements.

The carrying amounts of subsidiaryQs assets and liabilities at 1 January2010 are the same in both parent s(consolidated) opening Ind AS

statement of financial positionand subsidiary s financialstatements (except for adjustmentsfor consolidation procedures) and are

based on subsidiarys date oftransition to IndAS

No Impact onSubsidiary s

Statements ofFinancial Position.

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VE : Compound financial instruments


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VE : Compound financial instruments

For Example, Convertible debenture ,

such instruments need not be separatedin two portions if the liability componentis no longer outstanding at the date oftransition to Ind AS Such separation isrequired IF & ONLY IF conversion is

pending.

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VE : Decommissioning Liabilities


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g

included in cost of PPE

Example next Slide

A first-time adopter need not comply with the IFRIC 1re any changes that occurred before date oftransition.

If exemption used:

Measure liability at date of transition in accordance with Ind AS 37.

Estimate amount that would have been included in Non CurrentAsset when liability first arose. Discount using rate applicable to theintervening period.

Calculate accumulated depreciation at date of transition based onthe above amount.

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VE : Decommissioning Liabilities


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included in cost of PPE For Example Plant set up on 1.4.2005. Date of Transition 1.4.2010

Estimated liability on 1.4.2010 Rs. 1,000, Discount rate 5 %

Estimated Life 20 Years , PV of Rs. 1,000 , on 1.4.2010 .. Rs. 481.00

Discounting it back to 1.4.2005 Rs. 377.00 (Dep. 377/20)

Entry

Debit PPE Rs 377

Debit Finance Cost Rs 198Credit Accumulated Depreciation Rs. 94Credit Decommissioning Liability Rs. 481

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VE :Designation of previously recognised


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financial instruments

At the date of transition an entity may classify

previously designated Financial Instruments :

(a)As an available-for-sale ; or

(b) As financial asset or financial liability as atfair value through profit or loss provided theasset or liability meets the criteria in paragraph

9(b)(i), 9(b)(ii) or 11A of Ind AS 39 at that date.

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Exemptions for business combinations


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p

A first-time adopter may elect not to apply Ind AS103 retrospectively to past business combinations that

occurred before the date of transition.If any business combination is restated to complywith Ind AS 103 all later business combinations

shall be restated and entity shall also apply fromthat same date.

The exemption for past business combinations also

applies to past acquisitions of investments in associatesand of interests in joint ventures.

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Definition of BC for Exemption

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Business Combination definition Asper Ind AS or Local GAAP ?

If Exemption claimed Nothing to berestated ?


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What if subsidiaries not consolidatedunder previous a GAAP?

Carrying amounts of subsidiarys assets andliabilities are adjusted to the amounts that IndAS would require in subsidiarys separatestatement of Financial position.

If Ind AS 103 is not applied retrospectively.


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pp p y

1.The FTA should preserve the same Classification

= as an acquisition by legal acquirer

= a reverse acquisition by the legal acquiree,= or a uniting of interests.

as in its previous GAAP financial statements.

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Certain adjustments are still needed


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j

Continued

2. Recognise all its assets and liabilities at the date of transition toInd AS that were acquired or assumed in a past business

combination, EXCEPT(i) Financial assets and Financial liabilities derecognised inaccordance with previous GAAP covered by mandatory

exceptions ; and(ii) assets, including goodwill, and liabilities that were notrecognised in the acquirers consolidated statement of financialposition in accordance with previous GAAP and also would notqualify for recognition in accordance with IndAS in the separatestatement of financial position of the acquiree.

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Resulting Changes


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g g

Retained

Earnings

Goodwill

Another

category ofEquityException

Tax Impact

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Goodwill ----


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Goodwill be tested for impairment regardless

of indicators of impairment.

----Shall be at carrying amount in accordance withprevious GAAP at the date of transition subject to

following adjustments :

(i)increased by reclassification of Intangible asset or

(ii) Decreased upon recognition of Intangible Assetsubsumed in goodwill and if applicable adjust

deferred tax and non controlling interest.

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Goodwill - Following adjustments not made


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g

(i) to exclude in process research and development acquired inthat business combination * unless related to Ind AS 38.

(ii) to adjust previous amortisation of goodwill;

(iii) to reverse adjustments to goodwill that Ind AS 103 wouldnot permit, but were made in accordance with previousGAAP because of adjustments to assets and liabilitiesbetween the date of the business combination and the date oftransition to Ind AS.

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Goodwill Under


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Goodwill UnderINDAS

Previous GAAP

Intangible Assets (IA)

DOES Not QualifyUnder INDAS

IA Recognised Under IndAS

Impairment Loss

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IND AS 12 Income Taxes

IG5 An entity applies INDAS 12 to temporarydifferences between the carrying amount of the assetsand liabilities in its opening IND-AS statement offinancial position and their tax bases.

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IND-AS 101 :


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Disclosures

Reconciliations of Comprehensive Income & Equity.

The Ind AS requires disclosures that explainhow the transition from previous GAAP toInd AS affected the entitys reported

financial position, financialperformance and cash flow.

Discussed in details later.77


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DisclosuresDisclosures

Reported Financial Position ,i.e., Balance Sheet

Financial Performance , i.e.,Profit or loss Account and

Cash Flows

HowTransition formprevious

GAAP to Ind-AS affectedentitys

To Comply followings are required.


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Reconciliations of Equity at two dates at;( i) the date of the transition, and; ( 1st April,2010)

(ii) the end of the latest period presented in the entitys mostrecent annual financial statements in accordance with previousGAAP.

(31st

March,2011)Reconciliation of Total Comprehensive Income in accordance withInd-AS for the latest period in the entitys most recent annual

financial statements.Also for Interim Reports Covered Separately

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Disclosures : Do Not Confuse


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Non-Ind AS comparative information and historicalsummaries should be properly identified and an entityshall :

(a) label the previous GAAP information prominently as notbeing prepared in accordance with IndAS ; and

(b) disclose the nature of the main adjustments that would makeit comply with Ind AS.

No onus to quantify those adjustments.

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Disclosures : Separate effects of Errors From


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Changes

If an entity becomes aware of errors madeunder previous GAAP, the reconciliationsrequired by paragraph 24(a) and (b) shalldistinguish the correction of those errorsfrom changes in accounting policies.

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Disclosure : Reversal of impairment losses


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If the entity recognised or reversed any impairment losses

for the first time in preparing its opening Ind AS statementof financial position,

the disclosures that Ind AS 36 Impairment of Assets would haverequired if the entity

had recognised those impairment losses or reversals in the

period beginning with the date of transition to Ind AS.(Ind AS101.24(c))

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Disclosures : Designation of financial assets orfinancial liabilities


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Classification Under I GAAP Classification under IndAS ( D.19)

Financial Assets or FinancialLiability

Either

Financial Assets or FinancialLiabilities through profit or lossaccountsOR

Available for saleIn that case disclose the fair value of financial assets orfinancial liabilities designated into each category at the

date of designation and their classification and carryingamount in the previous financial statements.

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Disclosures: Use of fair value as deemed cost


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Plant ,Property &Equipment

IntangibleAssets

InvestmentProperty

Fair Value

Disclose, for each line item in the opening Ind-ASstatement of financial position:(a) the aggregate of those fair values; and(b) the aggregate adjustment to the carrying amountsreported under previous GAAP.

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Disclosure : Use of deemed cost for investments in subsidiaries,jointly controlled entities and associates


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Disclose:(a)the aggregate deemed cost of those investments for

which deemed cost is their previous GAAP carryingamount;

(b) the aggregate deemed cost of those investments forwhich deemed cost is fair value; and

(c) the aggregate adjustment to the carrying amountsreported under previous GAAP.

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Disclosure : Interim financial reports


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(i) Equity

A reconciliation of its equity in accordance withprevious GAAP at the end of that comparable

interim period to its equity under IndASs at thatdate

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Disclosure :Interim financial reports (ii)


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Comprehensive IncomeA reconciliation to its total comprehensive incomein accordance with Ind AS for that comparableinterim period (current and year to date).

The starting point for that reconciliation shall betotal comprehensive income in accordance withprevious GAAP for that period or, if an entity did

not report such a total, profit or loss in accordancewith previous GAAP.87


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C il d B


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Compiled By

Y M Desai & Co.

Chartered Accountants

[email protected]

09322244770

09820133227


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