Page 7 of 7 FirstFirst ... 34567
Results 61 to 66 of 66

Thread: 01 - Indian Accounting Standard (Ind-AS) 101 - First-time Adoption of Indian Accounting Standards

  1. #61
    IND-AS
    Guest

    Thumbs up Ind AS - 105 - Non-current Assets Held for Sale and Discontinued Operations of Indian Accounting Standard (Ind-AS) 101

    Ind AS - 105 - Non-current Assets Held for Sale and Discontinued Operations of Indian Accounting Standard (Ind-AS) 101

    First-time Adoption of Indian Accounting Standards

    Appendix - F


    Ind AS - 105 - Non-current Assets Held for Sale and Discontinued Operations

    IG62A. Ind AS 105 requires that an entity shall classify a non -current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use as at the date of transition to Ind-AS. However a first time adopter may measure non -current assets (or disposal groups) that meet the criteria to be classified as held for sale or for distribution to the owners and operations as at the date of transition to Ind -AS rather than going back to the date when the criteria to classify a non -current asset (or disposal group) as held for sale is met.


  2. #62
    IND-AS
    Guest

    Thumbs up Explanation of transition to Ind-ASs of Indian Accounting Standard (Ind-AS) 101 - First-time Adoption of Indian Accounting Standards

    Explanation of transition to Ind-ASs of Indian Accounting Standard (Ind-AS) 101

    First-time Adoption of Indian Accounting Standards

    Appendix - F


    Explanation of transition to Ind-ASs

    IG63. Paragraphs 24(a), (b) and (d), 25 and 26 of this Ind -AS require a first-time adopter to disclose reconciliations that give sufficient detail to enable users to understand the material adjustments to the Balance Sheet, statement of profit and loss and, if applicable, statement of cash flows.

    The following two examples relate to a situation where an entity has elected to apply paragraph 21(b).

    IG Example 11 A shows one way of satisfying requirements of paragraph 24(a) i.e reconciliation of equity at the date of transition to Ind -AS and paragraph 24(d)(ii) i.e. reconciliation of total comprehensive income for the comparative year.

    IG Example 11B shows another way of satisfying requirements of paragraph 24(a) i.e reconciliation of equity at the date of transition to Ind -AS, and 24 (d) i.e reconciliation of equity and total comprehensive Income for the comparative year.

    Paragraph 24(a), and (b) requires specific reconciliations of equity and total comprehensive income where an entity elects to apply paragraph 21(a).

    IG Example 11C shows one way of satisfying requirements of paragraph 24(a) i.e reconciliation of equity at the date of transition to Ind -AS, and 24(b) i.e reconciliation of equity and total comprehensive income for the year of transition to Ind -AS .

    IG Example 11A Reconciliation of equity and total comprehensive income . in accordance with paragraph 24(a), and 24(d)(ii) for an entity that elects to apply paragraph 21(b)

    Background
    An entity first adopted Ind-ASs in 2011-12, with a date of transition to Ind-ASs of 1 April 2011. Its last financial statements in accordance with previous GAAP were for the year ended 31 March 2011.

    Application of requirements

    The entity's first Ind-AS financial statements include the reconciliations and related notes shown below.

    Among other things, this example includes a reconciliation of equity at the date of transition to Ind-ASs (1 April 2011).

    In practice, it 0may be helpful to include cross -references to accounting policies and supporting analyses that give further explanation of the adjustments shown in the reconciliations below.
    If a first-time adopter becomes aware of errors made in accordance with previous GAAP, the reconciliations distinguish the correction of those errors from changes in accounting policies (paragraph 26 of this Ind-AS). This example does not illustrate disclosure of a correction of an error.

    Reconciliation of equity at 1 April 2011 (date of transition to Ind-ASs) – paragraph 24(a)

    Notes

    Previous
    GAAP
    Effect of
    transition to
    Ind-ASs
    Ind-ASs


    Rs
    Rs
    Rs
    1
    Property, plant and equipment
    8,299
    100
    8,399
    2
    Goodwill
    1,220
    150
    1,370
    2
    Intangible assets
    208
    (150)
    58
    3
    Financial assets
    3,471
    420
    3,891

    Total non-current assets
    13,198
    520
    13,718

    Trade and other receivables
    3,710
    0
    3,710
    4
    Inventories
    2,962
    400
    3,362
    5
    Other receivables
    333
    431
    764

    Cash and cash equivalents
    748
    0
    748

    Total current assets
    7,753
    831
    8,584

    Total assets
    20,951
    1,351
    22,302

    Interest-bearing loans
    9,396
    0
    9,396

    Trade and other payables
    4,124
    0
    4,124
    6
    Employee benefits
    0
    66
    66
    7
    Restructuring provision
    250
    (250)
    0

    Current tax liability
    42
    0
    42
    8
    Deferred tax liability
    579
    460
    1,039

    Total liabilities
    14,391
    276
    14,667

    Total assets less total liabilities
    6,560
    1,075
    7,635

    Issued capital
    1,500
    0
    1,500
    3
    Other reserves
    0
    294
    294
    5,9
    Retained earnings
    5,060
    781
    5,841

    Total equity
    6,560
    1,075
    7,635

    Notes to the reconciliation of equity at 1 April 2011:

    1. Depreciation was influenced by tax requirements in accordance with previous GAAP, but in accordance with Ind-ASs reflects the useful life of the assets. The cumulative adjustment increased the carrying amount of property, plant and equipment by 100.

    2. Intangible assets in accordance with previous GAAP included Rs 150 for items that are transferred to goodwill because they do not qualify for recognition as intangible assets in accordance with Ind -ASs

    3. Financial assets are all classified as at available for sale in accordance with Ind-ASs and are carried at their fair value of Rs 3,891. They were carried at cost of Rs 3,471 in accordance with previous GAAP. The resulting gains of Rs 294 (Rs 420, less related deferred tax of Rs 126) are included in the other reserves.

    4. Inventories include fixed and variable production overhead of Rs 400 in accordance with Ind-ASs, but this overhead was excluded in accordance with previous GAAP.

    5. Unrealised gains of Rs 431 on unmatured forward foreign exchange contracts are recognised in accordance with Ind -ASs, but were not recognised in accordance with previous GAAP. The resulting gains of Rs 302 (Rs 431, less related deferred tax of Rs 129) are included in the retained earnings.

    6. A pension liability of Rs 66 is recognised in accordance with Ind -ASs, but was not recognised in accordance with previous GAAP, which used a cash basis.

    7. A restructuring provision of Rs 250 relating to head office activities was recognised in accordance with previous GAAP, but does not qualify for recognition as a liability in accordance with Ind -ASs.

    8. The above changes increased the deferred tax liability as follows:


    Rs
    Other reserves (note 3)
    126
    Retained earnings
    334
    Increase in deferred tax liability
    460

    Because the tax base at 1 April 2011 of the items reclassified from intangible assets to goodwill (note 2) equaled their carrying amount at that date, it is assumed for the purposes of this illustration that the reclassification did not affect deferred tax liabilities.

    9. The adjustments to retained earnings are as follows:


    Rs
    Depreciation (note 1)
    100
    Production overhead (note 4)
    400
    Pension liability (note 6)
    (66)
    Restructuring provision (note 7)
    250
    Unrealised gain on forward contracts (note 5)
    431
    Tax effect of the above
    (334)
    Total adjustment to retained earnings
    781

    Reconciliation of total comprehensive income for 2011 -12:

    Note

    Previous
    GAAP
    Effect of
    transition to
    Ind-ASs
    Ind-ASs


    Rs
    Rs
    Rs

    Revenue
    20,910
    (47)
    20,863
    1
    Cost of sales
    (15,283)
    -
    (15,283)
    2
    Employee benefits
    (1,907)
    (130)
    (2,037)
    4
    Other expenditure
    (2,842)
    (150)
    (2,992)
    5
    Forward contract
    -
    (40)
    (40)

    Finance income
    1,446
    -
    1,446
    6
    Finance costs
    (1,902)
    7
    (1,895)

    Profit before tax
    422
    (360)
    62
    8
    Tax expense
    (148)
    120
    (28)

    Profit (loss) for the year
    Available-for-sale financial
    274
    (240)
    34
    7
    Assets
    -
    180
    180

    Tax relating to other



    8
    comprehensive income
    -
    (60)
    (60)

    Other comprehensive
    income
    -
    120
    120

    Total comprehensive income
    274
    (120)
    154

    Notes to the reconciliation of total comprehensive income for Year 2011-12:

    1. Revenue under Ind-AS is lower by Rs.47 because fair value of revenue allocated to customer loyalty program has been deferred in accordance with Ind -ASs but not in accordance with previous GAAP.

    2. A termination benefit is recognised in accordance with Ind -AS, but was not to be recognised in accordance with previous GAAP. The pension liability increased by Rs. 130 during 2011- 12,.

    3. Depreciation was influenced by tax requirements in accordance with previous GAAP, but reflects the useful life of the assets in accordance with Ind -ASs. The effect on the profit for 2011-12 was not material.

    4. A restructuring provision of Rs 250 which was accounted in accordance with previous GAAP prior to transition date i.e April 1, 2011 in this example, but did not qualify for recognition in accordance with Ind-ASs until subsequent to the transition date. This increases administrative expenses for 2011-12 in accordance with Ind-ASs.

    5. Forward exchange contracts are fair valued as at each balance sheet date under Indi -AS.

    The fair value of forward foreign exchange contracts decreased by Rs 40 during 2011 -12.

    6. Finance cost decreased by Rs. 7 on under Ind-AS on application of effective interest rate method..
    7. Available-for-sale financial assets carried at fair value in accordance with Ind -ASs increased in value by Rs 180 during 2011 -12. They were carried at cost i n accordance with previous GAAP. Fair value changes have been included in other comprehensive income.
    8. Adjustments 1-6 above lead to a reduction of Rs 120 in deferred tax expenses and adjustment 7 above lead to an increase of Rs 60 in deferred tax expense.

    Explanation of material adjustments to the statement of cash flows for 2011-12:
    Income taxes of Rs 133 paid during 2011-12 are classified as operating cash flows in accordance with Ind-ASs, but were included in a separate category of tax cash flows in accordance with previous GAAP. There are no other material differences between the statement of cash flows presented in accordance with Ind -ASs and the statement of cash flows presented in accordance with previous GAAP.

    IG Example 11B Format for reconciliation in accordance with paragraph 24(a) and (d) for an entity that elects to apply paragraph 21(b)


    A. Reconciliation of equity:


    For the Year ended
    April 1, 2010
    March 31, 2011
    Equity in accordance with Ind-AS
    xxx
    xxx
    Reconciling GAAP differences


    Property, Plant and Equipment (note x)
    Xx
    Xx
    Inventory (note x)
    Xx
    Xx
    Employee benefits (note x)
    xx
    xx
    Restructuring provision (note x)
    xx
    xx
    Financial Assets (note x)
    xx
    xx
    Unpaid Dividend
    (xx)
    (xx)
    Deferred Tax Liabilities (note x)
    (xx)
    (xx)
    Total adjustment to equity
    xx
    xx
    Equity in accordance with previous GAAP as per the most recent annual financial statements
    Xx
    Xx

    Provide explanatory note to reconciling items on the lines of example 11A above.

    B. Reconciliation of total comprehensive income:


    For the Year ended
    March 31, 2011
    Total comprehensive income in accordance with Ind-AS
    xxx
    Reconciling GAAP differences:

    Depreciation (note x)
    Xx
    Production overhead (note x)
    Xx
    Pension liability (note x)
    xx
    Restructuring provision (note x)
    xx
    Unrealised gain on forward contracts (note x)
    xx
    Tax effect of the above (note x)
    (xx)
    Adjustment to total comprehensive income
    xx
    Profit and Loss in accordance with previous GAAP as per the most recent annual financial statements
    Xx

    Provide explanatory note to reconciling items on the lines of example 11A above.


    IG Example 11C Format for reconciliation in accordance with paragraph 24(a) and (b) for an entity that elects to apply para graph 21(a)

    A. Reconciliation of equity:

    For the Year ended
    April 1, 2011
    Equity in accordance with Ind-AS
    xxx
    Reconciling GAAP differences

    Property, Plant and Equipment (note x)
    Xx
    Inventory (note x)
    Xx
    Employee benefits (note x)
    xx
    Restructuring provision (note x)
    xx
    Financial Assets (note x)
    xx
    Unpaid Dividend
    (xx)
    Deferred Tax Liabilities (note x)
    (xx)
    Total adjustment to equity
    Xx
    Equity in accordance with previous GAAP as per the most recent annual financial statements
    Xx

    Provide explanatory note to reconciling items on the lines of example 11A above.

    B. Reconciliation of total comprehensive income:

    For the Year ended
    March 31, 2012
    Total comprehensive Income in accordance with Ind-AS
    Xxx
    Reconciling GAAP differences:

    Depreciation (note x)
    Xx
    Production overhead (note x)
    Xx
    Pension liability (note x)
    Xx
    Restructuring provision (note x)
    Xx
    Unrealised gain on forward contracts (note x)
    Xx
    Tax effect of the above (note x)
    (xx)
    Adjustment to total comprehensive income
    Xx
    Profit and Loss in accordance with previous GAAP (assuming previous GAAP would have continued to be applied)
    Xx

    Provide explanatory note to reconciling items on the lines of example 11A above.




  3. #63
    IND-AS
    Guest

    Thumbs up Ind AS 102 - Share-based Payment of Indian Accounting Standard (Ind-AS) 101 - First-time Adoption of Indian Accounting Standards

    Ind AS 102 - Share-based Payment of Indian Accounting Standard (Ind-AS) 101

    First-time Adoption of Indian Accounting Standards

    Appendix - F


    Ind AS 102 - Share-based Payment

    IG64. A first-time adopter is encouraged, but not required, to apply Ind AS 102 Sharebased Payment to equity instruments that were vested before the date of transition to Ind-ASs.

    IG65. For example, if an entity's date of transition to Ind_ASs is 1 Apr il 2011, the entity applies Ind AS 102 to shares, share options or other equity instruments that had not yet vested at 1 April 2011.

    [Paragraphs IG66–IG200 reserved for possible guidance on future standards]



  4. #64
    IND-AS
    Guest

    Thumbs up Appendices to Indian Accounting Standards of Indian Accounting Standard (Ind-AS) 101 - First-time Adoption of Indian Accounting Standards

    Appendices to Indian Accounting Standards of Indian Accounting Standard (Ind-AS) 101

    First-time Adoption of Indian Accounting Standards


    Appendices to Indian Accounting Standards

    Appendix - A to Ind AS 16 Changes in Existing Decommissioning, Restoration and Similar Liabilities


    IG201. Ind AS 16 requires the cost of an item of property, plant and equipment to include the initial estimate of the costs of dismantling and removing the asset and restoring the site on which it is located. Ind AS 37 requires the liability, both initially and subsequently, to be measured at the amount required to settle the present obligation at the end of the reporting period, reflecting a current market -based discount rate.

    IG202. Appendix A to Ind AS 16 requires that, subject to specified conditions, changes in an existing decommissioning, restoration or similar liability are added to or deducted from the cost of the related asset. The resulting depreciable amount of the asset is depreciated over its useful life, and the periodic unwinding of the discount on the liability is recognised in profit or loss as it occurs.

    IG203. Paragraph D21 of Ind-AS 101 provides a transitional exemption. Instead of retrospectively accounting for changes in this way, entities can include in the depreciated cost of the asset an amount calculated by discounting the liability at the date of transition to Ind-ASs back to, and depreciating it from, when the liability was first incurred. IG Example 201 illustrates the effect of applying this exemption, assuming that the entity accounts for its property, plant and equipment using the cost model.

    IG Example 201 Changes in existing decommissioning, restoration and similar liabilities

    Background

    An entity’s first Ind-AS financial statements are for a period that ends on 31 March 2012 and with transition date of 1 April, 2011.

    The entity acquired an energy plant on 1 April 2008, with a life of 40 years. As at the date of transition to Ind-ASs, the entity estimates the decommissioning cost in 37 years’ time to be Rs 470, and estimates that the appropriate risk -adjusted discount rate for the liability is 5 per cent. It judges that the appropriate discount rate has not changed since 1 April 2008.

    Application of requirements

    The decommissioning liability recognised at the transition date is Rs 77 (Rs 470 discounted for 37 years at 5 per cent).

    Discounting this liability back for a further three years to 1 April 2008 gives an estimated liability at acquisition, to be included in the cost of the asset, of Rs 67. Accumulated depreciation on the asset is Rs 67 × 3/40 = Rs 5.

    The amounts recognised in the opening Ind -AS Balance Sheet on the date of transition to Ind-ASs (1 April, 2011) are, in summary:

    Decommissioning cost included in cost of plant
    67
    Accumulated depreciation
    (5)
    Decommissioning liability
    (77)
    Net assets/retained earnings
    (15)

    Last edited by IND-AS; 21-02-2011 at 03:32 PM.

  5. #65
    IND-AS
    Guest

    Thumbs up Appendix C to Ind AS 17 Determining whether an Arrangement contains a Lease of Indian Accounting Standard (Ind-AS) 101

    Appendix C to Ind AS 17 Determining whether an Arrangement contains a Lease of Indian Accounting Standard (Ind-AS) 101

    First-time Adoption of Indian Accounting Standards


    Appendix C to Ind AS 17 Determining whether an Arrangement contains a Lease


    IG204. Appendix C to Ind AS 17 specifies criteria for determining, at the inception of an arrangement, whether the arrangement contains a lease. It also specifies when an arrangement should be reassessed subsequently.

    IG205. Paragraph D9 of the Ind-AS provides a transitional exemption. Instead of determining retrospectively whether an arrangement contains a lease at the inception of the arrangement and subsequently reassessing that arrangement as required in the periods before transition to Ind -ASs, entities may determine whether arrangements in existence on the date of transition to Ind -ASs contain leases by applying paragraphs 6–9 of Appendix C to Ind AS 17 to those arrangements on the basis of facts and circumstances existing on that date.

    IG Example 202 Determining whether an arrangement contains a lease

    Background
    An entity’s first Ind-AS financial statements are for a period that ends on 31 March 2012.
    Its date of transition to Ind-ASs is therefore 1 April 2011.

    On 1 April 2010 the entity entered into a take -or-pay arrangement to supply gas.
    On 1 April 2011, there was a change in the contractual terms of the arrangement.

    Application of requirements
    On 1 April 2011 the entity may determine whether the arrangement contains a lease by applying the criteria in paragraphs 6–9 of Appendix C to Ind AS 17 on the basis of facts and circumstances existing on that date. Alternatively, the entity applies those criteria on the basis of facts and circumstances existing on 1 April 2010 and reassesses the arrangement on 1 April 2011. If the arrangement is determined to contain a lease, the entity follows the guidance in paragraphs IG14 –IG16.

    IG206. Paragraph D9A of Ind-AS 41 provides a transitional exemption in addition to that discussed in paragraph IG205. The exemption in paragraph D9A applies only to arrangements that were assessed in the same manner as required by Appendix C to Ind AS 17. If arrangements exist at the date of transition to Ind-ASs that an entity did not assess under previous GAAP in the same manner as required by Appendix C to Ind AS 17 to determine whether they contain a lease, the entity may apply the transition exemption discussed in paragraph IG205.


  6. #66
    IND-AS
    Guest

    Thumbs up Appendix - 1 of Indian Accounting Standard (Ind-AS) 101 - First-time Adoption of Indian Accounting Standards

    Appendix - 1 of Indian Accounting Standard (Ind-AS) 101

    First-time Adoption of Indian Accounting Standards



    Appendix - 1

    Major differences between Indian Accounting Standard (Ind-AS) 101 First-time Adoption of Indian Accounting Standards and IFRS 1

    Note: This Appendix is not a part of the Indian Accounting Standard (Ind AS) 101, First -time Adoption of Indian Accounting Standards. The purpose of this Appendix is only to highlight differences between Ind AS 101 and corresponding International Financial Reporting Standard (IFRS) 1, First-time Adoption of International Financial Reporting Standards.

    1. Paragraph 2A of Ind AS 101 states that the entities that have filed financial statements prepared in accordance with IFRS with regulatory authorities can adopt, for the purpose of Ind AS 101, the balance sheet so filed as at the end of the immediately preceding financial year as the opening Ind AS balance sheet after making adjustments for differences between Ind-ASs and IFRSs. IFRS 1 does not have such a specific requirement. Consequential to this, new paragraphs 24A and 32B have been included in Ind AS 101.

    2. 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, 1956 whereas IFRS 1 provides various examples of first IFRS financial statements.

    3. Paragraph 4 of IFRS 1 provides various examples of instances when an entity does not apply this IFRS. Ind AS 101 does not provides the same. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph number is retained in Ind AS 101.

    4. Paragraph 32 (c) of IFRS 1 has been deleted in Ind AS 101 and included as paragraph 32A as a consequence of redrafting of the paragraph 32 in Ind AS 101. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph number is retained in Ind AS 101.


    5. IFRS 1 defines transitional date as beginning of the earliest period for which an entity presents full comparative information under IFRS. It is this date which is the starting point for IFRS and it is on this date the cumulative impact of transition is recorded based on assessment of conditions at that date by applying the standards retrospectively except to the extent specifically provided in this standard as optional exemptions and mandatory exceptions.

    Ind-AS 101, however, provides that the date of transition is the beginning of the current period and in addition provides an option to present comparative financial statements in accordance with Ind-AS on a memorandum basis.

    Arising from this fundamental change, there are other consequential changes to Ind -AS 101. For example, disclosures required under paragraph 21 and reconciliations under paragraphs 24 to 26, Ind-AS 101 have been modified to accommodate this option available under Ind-AS 101. In addition, these have been modified to include the latest corresponding previous periods’ financial statements as per the previous GAAP when presenting its first Ind-AS financial statements. The relevant Implementation Guidance and illustrative examples have been appropriately modified to reflect the option provided to transitioning entities.

    6. IFRS 1 defines previous GAAP as the basis of accounting that a first -time adopter used immediately before adopting IFRS.

    Ind-AS 41, however, defines previous GAAP as the basis of accounting that a first -time adopter used immediately before adopting Ind -AS for complying with the reporting requirements in India.
    The change makes it mandatory, except where the previous financial statements were prepared as per IFRS, for Indian entities to consider the financial statements prepared in accordance with existing notified Indian accounting standards as was applicable to them as previous GAAP when it transitions to Ind -AS.

    7. Paragraph 22 of IFRS 1 requires specific disclosures if the entity provides n on-IFRS comparative information and historical summaries . Such disclosures are not required under Ind-AS 101. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph number is retained in Ind AS 101..

    8. IFRS requires reconciliations for opening equity, total comprehensive income, cash flow statement and closing equity for the comparative period to explain the transition to IFRS from previous GAAP.

    Ind-AS 101, provides an option to provide a comparative period financial statements on memorandum basis. Accordingly, entities that do not provide comparatives need not provide reconciliation for total comprehensive income, cash flow statement and closing equity in the first year of transition but are expected to disclose significant differences pertaining to total comprehensive income. Entities that provide comparatives would have to provide reconciliations which are similar to IFRS.

    9. All transitional provisions related to Ind ASs, wherever considered appropriate have been included in Ind AS 101. The following paragraphs provides the transitional provisions which are included in the other Ind ASs:

    (i) Paragraph D4 includes the transitional provisions of IFRS 4;
    (ii) Paragraph D22 includes the transitional provisions of IFRIC 12.

    10. 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 41. 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. IFRS 1 provides for various dates from which a standard could have been implemented. For example,


    • Paragraph B2 of IFRS 1 provides that, an entity would have had to adopt the de - recgonition requirements for transactions entered after 1 January, 2004. However, for Ind-AS 101 purposes, all these dates have been changed to coincide with the transition date elected by the entity adopting these converged standards i.e. Ind-AS;


    • 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 IFRSs and (b) 1 January 2005. However, for Ind-AS 101 purposes, all these dates have been changed to coincide with the transition date elected by the entity adopting these converged standards i.e. Ind-AS;

    (b) Deletion of certain exemptions not relevant for India. Certain instances of such items are as follows:


    • Paragraph D10 of IFRS 1 provides an entity that adopted the corridor approach for recording actuarial gain and losses arising from accounting for employee obligations with an option to recognize the entire such gain or loss to retained earnings, at the date of transition, rather than requiring them to split such gains and losses as recognized and unrecognized gains and losses. In India, since corridor approach is not elected, the resultant first time transition provision has been deleted ,. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph number is retained in Ind AS 101;



    • Paragraph D23 of IFRS 1 provides for transitional adjustment requiring companies to apply the provisions of IAS 23 to be applied prospectively after the transition date. However, this was considered as not relevant in Indian situation as Ind AS 23 AS 16 always required an entity to capitalize borrowing costs as compared to IAS 23 where it provided an option to expense out such borrowing cost . Consequently, paragraphs IG 23 and IG 24 have also been deleted. In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph numbers are retained in Ind AS 101. and


    (c) Inclusion/modification of existing exemptions to make it relevant for India. For example,


    • Paragraph D7A has been added to provide for transitional relief from the retrospective application of Ind AS 16 : Property, Plant and Equipment . Paragraph D7A provides an entity option to use carrying values of all such assets on or before April 1, 2007 in accordance with previous GAAP as an acceptable starting point under Ind-AS. Paragraph 27B has been included in Ind AS 101 which requires the disclosure that if an entity adopts for first time exemption the option provided in accordance with paragraph D7A, the fact and the accounting policy shall be disclosed by the entity until such time that significant block of such assets is fully depreciated or derecognised from the entity’s Balance Sheet.



    • Paragraph D9 provides for transitional relief from retrospective application of paragraphs 6-9 of the Appendix C of Ind AS 17.



    • Paragraph D11A has been added to provide the transitional relief from the retrospective application of Ind AS 19 that a first-time adopter may elect to recognise all cumulative actuarial gains and losses subsequent to the date of transition to Ind-AS in other comprehensive income as Ind AS 19 requires recognition of actuarial gains and losses for post -employment defined benefit plans and other long-term employment benefit plans in other comprehensive income immediately and are not reclassified to profit or loss in a subsequent period.


    • Paragraph D13 A has been added to provide exemption as a consequence of optional treatment for certain exchange differences which is given in Ind AS 21.


    • Paragraph D19A has been added to provide that the financial instruments carried at amortised cost should be measured in accordance with Ind -AS 39 from the date of recognition of financial instruments unless it is impracticable (as defined in Ind AS 8) for an entity to apply retrospectively the effective interest method or the impairment requirements in paragraphs 58 –65 and AG84–AG93 of Ind AS 39.If it is impracticable then the fair value of the financial asset at the date of transition to Ind-ASs shall be the new amortised cost of that financial asset at the date of transition to Ind-ASs.


    • D19B has been added to provide that financial instruments measured at fair value shall be measured at fair value as on the date of transition to Ind -AS.



    • Paragraph D-26 has been added to provide for transitional relief while applying Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations . Paragraph D26 provides an entity to use the transitional date circumstances to measure such assets or operations at the lower of carrying value and fair value less cost to sell.


    11. Paragraphs IG 15 and IG 16 of Appendix F have been deleted in Ind AS 101 as they are with reference to the earlier version of Ind AS 17 , hence are not relevant . In order to maintain consistency with paragraph numbers of IFRS 1, the paragraph numbers are retained in Ind AS 101.

    12. Paragraphs IG 18 and IG 42 of Appendix F has been deleted in Ind AS 101 as these are not relevant. In order to maintain consistency with paragraph number of IFRS 1, the paragraph numbers are retained in Ind AS 101.

    13. Paragraph IG 61 has been deleted in Ind AS 101 as it is with reference to fair value model which is not permitted under Ind AS 40. In order to maintain consistency with of paragraph number of IFRS 1 , the same is retained in Ind AS 101

    14. Different terminology is used in this standard, 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’.

    15. Paragraph IG 25 of Appendix F appears as ‘Deleted ‘in IFRS 1. In order to maintain consistency with paragraph number of IFRS 1, the same is retained in Ind AS 101.



Tags for this Thread

Bookmarks

Posting Permissions

  • Register / Login to post new threads
  • Register / Login to post replies
  • Register / Login to post attachments
  • You may not edit your posts
  •