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Efficient Transition to Ind AS for Transparent Financial Information

This guide provides guidance and a suitable starting point for entities transitioning to Ind AS, ensuring practical and efficient implementation, resulting in transparent and comparable financial information. Applies to the entity's first Ind AS financial statements and its interim financial reports.

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Efficient Transition to Ind AS for Transparent Financial Information

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  1. Introduction Objective and scope • Transition for the first time needs guidance and a suitable starting point for Ind AS • Transition should be efficient and practical to implement • Results in transparent and comparable financial information for users over all periods presented Applies to the entity’s first Ind AS financial statements and its interim financial reports for part of the period covered by those financial statements. Does not apply to changes in accounting policies made by an entity that already applies Ind AS.

  2. Introduction Timing Ind AS Ind AS Ind AS IGAAP IGAAP IGAAP Comparative period First Ind AS reporting period Q2 Q1 Q3 Q2 Q3 Q1 31/03/2014 1/4/2015 1/4/2016 31/3/2017 Transition Date Opening balance sheet Reporting Date Closing balance sheet Adoption Date

  3. Introduction Principles IndAS 101 requires to: • Avail the benefit only once. • Select accounting policies that comply with Ind AS, and apply those policies for all periods presented in the first Ind AS financial statements. • Apply the mandatory exceptions. • Consider whether to apply any of the optional exemptions from retrospective application. • Prepare an opening balance sheet at the date of transition per Ind AS. • Provide disclosures to explain the transition to Ind AS from Previous GAAP. First IndAS financial statements are those that contain “an explicit and unreserved statement of compliance with Ind ASs” First financial statements comprise 3 Balance Sheets, 2 Statements of Profit and Loss & Cash Flowsand 2 Statements of Changes In Equity and related notes.

  4. Recognition and measurement Ind AS 101 requires an entity to prepare its “Opening Balance Sheet” : recognise all assets and liabilities required by Ind AS not recognise items as assets or liabilities if Ind AS does not permit such recognition reclassify assets and liabilities recognised under IGAAP to be in conformity with Ind AS apply Ind AS principles in measuring all recognised assets and liabilities All Ind AS standards should be applied retrospectively and given effect in the Opening Balance Sheet EXCEPT where mandatory exceptions and optional exemptions are permitted. Optional exemptions (21) Estimates and Mandatory exceptions (7)

  5. Recognition and measurement Mandatory exceptions

  6. Recognition and measurement Mandatory exceptions

  7. Recognition and measurement Optional exemptions

  8. Recognition and measurement Optional exemptions

  9. Recognition and measurement Optional exemptions

  10. Recognition and measurement Optional exemptions

  11. Recognition and measurement Optional exemptions Any, all or none of these exemptions may be taken. The exemptions are not applied by analogy to other items.

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