91

9. First-time adoption
of Ind AS

Summary
This chapter covers:
• Ind AS 101, First-time Adoption of Indian Accounting Standards

The 2013 Act mandates preparation of financial statements of specified companies in accordance
with Ind AS. For this purpose, the Ministry of Corporate Affairs (MCA) had laid down a road
map which provided guidance for adoption of Ind AS by the specified companies in a phased
manner. Ind AS 101 provides principles for transition and disclosures to be made in the financial
statements by a first-time adopter.

Key principles
• Ind AS 101 provides a suitable starting point for Accounting policies
entities that are transitioning to Ind AS. Ind AS 101
• An entity is required to use the same accounting
is applied by an entity in its first Ind AS financial
policies in its opening Ind AS balance sheet and
statements and each interim financial report, if
throughout all periods presented in its first Ind AS
any, that it presents in accordance with Ind AS 34,
financial statements.
Interim Financial Reporting.
• Accounting policies are required to be chosen
• The date of transition is the beginning of the earliest
from Ind AS effective at the end of its first Ind
comparative period presented on the basis of
AS reporting period, unless there is an explicit
Ind AS. At least one year of comparatives is also
exemption or option provided in Ind AS 101.
presented together with the opening balance sheet,
which is prepared at the date of transition to Ind AS. • An entity is required to take the following steps in its
opening Ind AS balance sheet:

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 Ind AS Implementation Guide I 92

– Recognise all assets and liabilities whose opening Ind AS balance sheet should comply with
recognition is required by Ind AS each Ind AS:
– Not recognise items as assets or liabilities if Ind – Prohibits retrospective application of some
AS do not permit such recognition specific aspects of an Ind AS
– Reclassify items that it recognised in accordance – Grants exemptions from some specific
with previous GAAP as one type of asset, liability requirements of an Ind AS.
or component of equity, but are a different type Explanation of transition to Ind AS
of asset, liability or component of equity in
accordance with Ind AS, and • An entity is required to explain how the transition
from previous GAAP to Ind AS affected its reported
– Apply Ind AS in measuring all recognised assets balance sheet, financial performance and cash
and liabilities. flows.
• The accounting policies in the opening Ind AS Disclosures
balance sheet may differ from those that an entity
used for the same date under previous GAAP. The • Detailed disclosures on the first-time adoption of
resulting adjustments arising from events and Ind AS including reconciliations of equity and profit
transactions before the date of transition to Ind AS or loss from previous GAAP to Ind AS are required
are generally recognised in retained earnings. in the annual financial statements as well as some
disclosures in its interim financial statement.
• Ind AS 101 establishes the following two categories
of exceptions to the principle that an entity’s

Significant differences from IFRS1

• Definition of previous GAAP • Foreign currency translation on long-term

IFRS 1, First-time Adoption of International monetary items
Financial Reporting Standards defines previous Paragraph D13AA of Appendix D to Ind AS 101
GAAP as the basis of accounting that a first-time provides that a first-time adopter may continue
adopter used immediately before adopting IFRS. the previous GAAP policy adopted for accounting
Ind AS 101 defines previous GAAP as the basis of for exchange differences arising from translation
accounting that a first-time adopter used for its of long- term foreign currency monetary items
reporting requirement in India immediately before recognised in the financial statements for the
adopting Ind AS. The change made it mandatory period ending immediately before the beginning
for Indian entities to consider the financial of the first Ind AS financial reporting period.
statements prepared in accordance with the Consequently, Ind AS 21 also provides that it does
notified Accounting Standards as was applicable not apply to long-term foreign currency monetary
to them as previous GAAP when they transition to items for which an entity has availed of the
Ind AS. exemption in paragraph D13AA of Appendix D to
Ind AS 101.
• Deemed cost for PPE/intangible assets/
investment property/investments in IFRS 1 does not include a similar exemption for
subsidiaries, associates and joint ventures long-term foreign currency monetary items.

IFRS 1 provides that on the date of transition the • Adjustment in goodwill

carrying amount for items of Property, Plant and IFRS 1 requires a first-time adopter to exclude
Equipment (PPE), intangible assets, investment from its opening balance sheet, any item
property, or investments in subsidiaries, recognised in accordance with previous GAAP
associates and joint ventures (as presented in that does not qualify for recognition as an asset
the separate financial statements), should be or liability under IFRS. The first-time adopter
measured by either applying the relevant Ind AS shall account for the resulting change in retained
retrospectively or at their fair value. earnings as at the transition date except in certain
Paragraph D7AA of Ind AS 101 provides an specific instances where it requires adjustment in
additional option to measure these items on goodwill. In such specific instances where IFRS 1
the date of transition at their carrying amount allows an adjustment in goodwill, under Ind AS 101
in accordance with previous GAAP and use this this amount may be adjusted in capital reserve to
amount as a measure of their deemed cost. the extent it does not exceed the balance available
in capital reserve.

1. Indian Accounting Standards (Ind AS): An Overview (Revised 2019)

published by the ICAI

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 93

Significant differences arising out of Significant differences from IFRS

the requirements of 2013 Act
• Investment property
• An entity may be required to comply with Paragraph D7(a) of IFRS 1 provides an option
the accounting, presentation and disclosure between ‘fair value at the date of transition to
requirements prescribed in a court approved IFRS and ‘previous GAAP revalued amount’.
scheme relating to a merger or amalgamation A first-time adopter may exercise either of the
transaction. The requirements of Ind AS 101 may option for accounting its investment property.
stand modified to this extent. However, this option has not been provided
under Ind AS 101, as Ind AS 40 permits only
the cost model.
• Service concession arrangements relating
to toll roads
Paragraph D22 of Ind AS 101 permits a first-
time adopter to continue the amortisation
policy adopted under previous GAAP for
intangible assets arising from ‘toll-road’
service concession arrangements that were
recognised in the financial statements before
the beginning of the first Ind AS financial
reporting period. Therefore, entities that have
adopted a revenue based amortisation policy
for such intangible assets under previous
GAAP are permitted to continue applying such
policy for toll road intangible assets recognised
prior to the Ind AS implementation date.

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 Ind AS Implementation Guide I 94

Guidance from ITFG clarifications foreign currency items to the cost of the related
PPE. At the time of transition to Ind AS if such an
entity decides to avail the deemed cost exemption
I. Clarifications with respect to the application of under paragraph D7AA of Ind AS 101, but does not
the deemed cost exemption elect to continue to capitalise foreign exchange
differences (also refer section II below), it would
As stated above, Ind AS 101 permits an entity
still be required to carry forward the entire previous
to measure items of PPE, investment property,
GAAP carrying amount for all of its PPE and would
intangible assets and investments in subsidiaries/
not be permitted to reverse the impact of paragraph
associates/joint ventures on the date of transition
46/46A of AS 11 from the deemed cost of PPE.
at either their fair value or their carrying amount
(ITFG 7, Issue 3)
in accordance with previous GAAP and use this
amount as a measure of their deemed cost. Subsequent to issuing the above clarification in
bulletin 7, the ITFG clarified (refer paragraph I (c)
The application of this optional exemption gives
below) that the deemed cost of an asset, being its
rise to several accounting issues, especially when
previous GAAP carrying amount, may be adjusted
considering the interaction of this exemption in
only to the extent of consequential adjustments
Ind AS 101 with the requirements of other Ind AS.
arising from the application of other Ind AS (ITFG 12,
These issues are further discussed below.
Issue 10).
a. Applicability of deemed cost exemption
c. Consequential adjustments to deemed cost,
Paragraph D7AA of Ind AS 101, provides an option being the previous GAAP carrying amount of
to a first-time adopter at the date of transition assets and liabilities
to continue with the carrying value of all PPE
An entity is required to recognise, classify and
(intangible assets or investment property) measured
measure assets and liabilities in its opening Ind AS
as per previous GAAP, and use it as its deemed cost
balance sheet in accordance with Ind AS.
without making any further adjustments based on
application of other Ind AS. Based on the above guidance, and subject to any
specific exemption/exception in Ind AS 101, all
Alternatively, Ind AS 101 also permits a first-time
assets and liabilities are required to be recognised in
adopter to elect to measure an item of PPE at the
accordance with the principles of Ind AS 101.
date of transition to Ind AS at its fair value and use
that fair value as its deemed cost on transition. This However, there may be situations where no
option may be applied selectively to some items of exemption/exception has been provided for an item
PPE. of asset and/or liability, and the application of Ind
AS principles to such an item has a corresponding
impact on another item of asset and/or liability
An entity is not permitted to continue with the
which is measured at its previous GAAP carrying
previous GAAP carrying value as deemed cost
amount at the transition date as permitted by Ind AS
on a selective basis for some of the items of PPE
101.
and use fair value as deemed cost approach for
the remaining items. (ITFG 5, Issue 3) In such a situation, the adjustment to the assets/
liabilities measured at deemed cost is only
consequential in nature and arises due to the
b. Reversal of the effects of paragraph 46/46A of application of the transition requirements of Ind
AS 11 under previous GAAP carrying amount of AS 101 to another item. Therefore, the previous
PPE on transition to Ind AS GAAP carrying amount may be adjusted only to the
An entity that would avail of deemed cost extent of consequential adjustments. Except such
exemption of paragraph D7AA (as mentioned in consequential adjustments, no further adjustments
above issue) would be required to carry forward should be made to the deemed cost (being the
the entire previous GAAP carrying amount for all of previous GAAP carrying amount) due to the
its PPE on transition to Ind AS. Ind AS 101 does not application of other Ind AS. (ITFG 12, Issue 10).
permit any further adjustments to the deemed cost
of PPE. This clarification may result in additional
adjustments being made to the deemed cost of
Under previous GAAP, an entity may have availed
PPE for items such as certain borrowing costs,
of the option under paragraph 46/46A of AS 11, The
hedging gains/losses, etc.
Effects of Changes in Foreign Exchange Rates to
capitalise foreign exchange differences on long-term

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 95

This clarification is more general in nature, although though the PPE is measured at its deemed cost
clarifications have been provided in the past on specific (being previous GAAP carrying amount). (ITFG 5,
consequential adjustments – please refer paragraph I Issue 5)
(d) and (e) below: ii. Fair value as deemed cost: The entity may elect
d. Processing fees on loans to measure its PPE at fair value and use that as
An entity may have incurred processing fees on its deemed cost on the date of transition to Ind
a loan obtained before transition to Ind AS and AS in accordance with principles of Ind AS 101.
capitalised these as part of the relevant item of PPE Considering the principles in Ind AS 113, fair
in accordance with the previous GAAP. On transition value of the asset is the exit price that would be
to Ind AS, an entity may elect to apply the deemed received to sell the asset in an orderly transaction.
cost exemption and continue with the previous As fair value is a market-based measurement
GAAP carrying value for such PPE. and not an entity specific measurement, it is
independent of the government grant received
However, the loan is required to be measured at on the asset. Consequently, no adjustment with
amortised cost (in accordance with Ind AS 109) and regard to government grant should be made to
its carrying amount is to be restated to its amortised the fair value of the PPE, being the deemed cost
cost in accordance with Ind AS 109 as at the date of on the date of transition to Ind AS. However, the
transition. entity is required to recognise the asset related
As a consequence, in order to restate the carrying government grant outstanding on the transition
amount of loan, the deemed cost of the PPE, being date as deferred income in accordance with
its previous GAAP carrying amount at the date of the requirements of Ind AS 20. The resultant
transition, should be reduced by the amount of adjustments should therefore be made in
processing cost (net of cumulative depreciation retained earnings or if appropriate, another
impact). category of equity at the date of transition to Ind
This would be in the nature of consequential AS. (ITFG 12, Issue 2)
adjustment to enable an adjustment to the carrying Please refer chapter 10, Other topics-Accounting for
amount of loan as required by Ind AS. (ITFG 5, Issue Government Grants and Disclosure of Government
4) Assistance for more details on amended Ind AS 20
e. Government grants for purchase of a fixed asset (ITFG 17, Issue 1)

An entity may have received a government grant f. Capital spares

related to an asset, prior to the date of transition An entity that has elected to continue with the
to Ind AS. As permitted under previous GAAP, the carrying value under previous GAAP as the deemed
amount of grant received may have been deducted cost for all of its PPE on transition to Ind AS, may
from the carrying amount of the related asset. have capital spares that were recognised as
Certain issues may arise based on whether an entity inventory under previous GAAP but are eligible for
elects to measure the related asset at its previous capitalisation under Ind AS. On transition to Ind AS
GAAP carrying amount or at fair value as its deemed such capital spares should be recognised as a part
cost on transition. Those issues are as follows: of PPE if they meet the criteria for capitalisation
under Ind AS 16. Ind AS 16 should be applied
i. Carrying value as deemed cost: On transition to retrospectively to measure the amount that will
Ind AS, the entity may avail of the deemed cost be recognised for such spare parts on the date of
exemption to continue with the carrying amount transition to Ind AS. Depreciation on these spare
of PPE in accordance with the previous GAAP. parts should begin from the date when they are
The government grant outstanding on the available for use.
transition date is required to be recognised
as deferred income in accordance with the The exemption to continue with the carrying value
requirements of Ind AS 20. Therefore, to of PPE under previous GAAP as the deemed cost
recognise the amount of unamortised deferred would not apply to capital spares that were not
income as at the date of the transition in recognised as PPE under previous GAAP. (ITFG 3,
accordance with Ind AS 101, a consequential Issue 9 and ITFG 5, Issue 6)
adjustment should be made to the carrying
amount of PPE (net of cumulative depreciation
impact) and retained earnings respectively, even

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 Ind AS Implementation Guide I 96

g. Capital work in progress In this case, accumulated depreciation and

provision for impairment under previous GAAP
Capital work-in-progress is considered to be in have no relevance, and can not be carried forward
the nature of PPE under construction. or reversed under Ind AS. However, the impairment
loss for the period between the deemed cost
determination date (date of revaluation under
The optional exemption under paragraph D7AA
previous GAAP) and the transition date (when Ind
of Ind AS 101, to continue with the carrying value
AS accounting and depreciation policies are applied
under previous GAAP as deemed cost under Ind
to the asset to arrive at its cost on date of transition
AS, is also available with regards to capital work in
under Ind AS) may be reversed if permitted under
progress. (ITFG 3, Issue 11)
Ind AS 36.
h. Capitalisation of an item of PPE not falling under
However, where an entity has not availed of the
the definition of an asset
deemed cost exemption and has opted to apply Ind
The deemed cost exemption under paragraph D7AA AS 16 retrospectively in accordance with Ind AS 101,
of Ind AS 101 cannot be availed for an item that did then impairment loss could be reversed if permitted
not meet the definition of a tangible asset under by Ind AS 36. (ITFG 8, Issue 5)
previous GAAP (or PPE under Ind AS) and was
k. Applicability of deemed cost exemption on
incorrectly capitalised under previous GAAP.
assets classified as held for sale
The incorrect capitalisation would be considered Under previous GAAP ‘assets held for sale’ in
as an error under Ind AS 101 and disclosed in the accordance with AS 10, Property, Plant and
net worth reconciliation. (ITFG 8, Issue 4) Equipment, may be stated at lower of their net
book value and net realisable value and presented
separately from other fixed assets. On transition
i. Revalued amount of PPE considered as deemed to Ind AS, if these assets are found not to fulfil
cost the criteria for being classified as ‘held for sale’ in
accordance with Ind AS 105, Non-current assets
An entity that has revalued its PPE in the past held for Sale and Discontinued Operations, then
may, at the date of transition to Ind AS, elect to such assets should be reclassified as PPE.
continue with the revised carrying value of its PPE
under previous GAAP and use that as its deemed However, the entity could avail the deemed cost
cost under Ind AS 101. If such an entity elects to exemption for such assets since the exemption
apply the cost model (i.e. to carry PPE at cost less applies to all PPE recognised in the financial
accumulated depreciation and impairment losses) statements at the date of transition to Ind AS,
for subsequent measurement of its PPE under Ind including those that were presented/disclosed
AS 16, it should not carry forward the revaluation separately. (ITFG 10, Issue 4)
reserve (created under previous GAAP) under Ind l. Deemed cost of an investment in a subsidiary
AS. On transition date, a first-time adopter can
determine cost of its investment in a subsidiary,
After transition, the entity would no longer be associate or joint venture recognised in SFS by
applying the revaluation model under Ind AS using any of the following methods:
16. Additionally, deferred tax would need to be
• Cost determined in accordance with Ind AS 27
recognised on such asset to the extent of the
(i.e. retrospective application of Ind AS 27)
difference between its carrying value in the
financial statements and the tax base. (ITFG 8, • Fair value at the entity’s date of transition to Ind
Issue 7) AS
• Previous GAAP carrying amount.
j. Reversal of impairment provision Accordingly, if an entity chooses to measure its
If an entity elects to apply the deemed cost investment at fair value at the date of transition then
exemption under Ind AS 101 and measure its PPE at fair value is deemed to be cost of such investment
its previous GAAP revaluation amount on transition, for the entity and, therefore, it should carry its
the revalued amounts of PPE as per previous GAAP, investment at that amount (i.e. fair value at the date
is considered as cost under Ind AS. of transition) after the date of transition. (ITFG 3,
Issue 12)

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 97

m. Investment in debentures of a subsidiary o. Measurement of investment in subsidiaries,

company joint ventures and associates at the end of the
Ind AS 27 requires an entity to account for its first Ind AS financial reporting period
investments in subsidiaries, joint ventures and When an entity prepares SFS, Ind AS 27 requires
associates either at cost, or in accordance with Ind it to account for its investments in subsidiaries,
AS 109 (i.e. at fair value) in its SFS. Further, if an joint ventures and associates either at cost or in
entity elects a cost based measurement for such accordance with Ind AS 109.
investments, Ind AS 101 permits the investment to If an entity has elected to measure a particular
be measured at its deemed cost, being its fair value category of investment (e.g. its investments in
or its previous GAAP carrying amount on the date of its subsidiaries) at deemed cost on the date of
transition to Ind AS. transition, it is required to carry such investment at
The guidance in Ind AS 27 and Ind AS 101 stated cost in its first Ind AS financial statements prepared
above, is applicable only to those investments in as at the end of the reporting period. However, for
a subsidiary, associate or joint venture that would investments made in other categories where it
meet the definition of an ‘equity’ instrument (from has not selected the deemed cost exemption (e.g.
the issuer’s perspective) under Ind AS 32. investments in associates or joint ventures), the
Therefore, for example, if an entity invests in company would have an option to account for those
debentures issued by its subsidiary, which are investments either at cost or in accordance with Ind
classified as a financial liability by the subsidiary, it AS 109. (ITFG 11, Issue 4)
would have to classify the investment as a financial
asset and measure this in accordance with Ind AS Once an entity chooses the method of
109. The deemed cost exemption in Ind AS 101 accounting (i.e. deemed cost and cost-based
would not apply to such an investment. (ITFG 7, measurement or measurement in accordance
Issue 8) with Ind AS 109) for a particular category of
investment, it is required to continue with the
(Please refer Chapter 10, Other topics- Separate
same accounting policy for that category of
Financial Statements for more details on
investment.
investments in debentures of a subsidiary)
n. Accounting for interest-free loan provided by
holding entity in its SFS II. Clarifications with respect to application of the
exemption to continue with the accounting
On transition to Ind AS, an entity that has advanced
policy under para 46A of AS 11
an interest-free loan to its subsidiary, is required
to recognise the difference between the present Under previous GAAP an entity was permitted by
value of the loan amount and its carrying amount as paragraph 46/46A of AS 11 to capitalise foreign
per previous GAAP as an addition to its investment exchange gains or losses on long-term foreign
in the subsidiary in its SFS. If the entity elects to currency monetary items. If selected, this option
measure its investment in the subsidiary at its permitted such exchange gains/losses to be either
previous GAAP carrying amount, being deemed capitalised into the cost of a related item of PPE, or
cost, in its SFS, in accordance with Ind AS 101, then accumulated in a reserve named Foreign Currency
the difference between the carrying amount of the Monetary Item Translation Difference Account
loan as per previous GAAP and its present value, (FCMITDA).
would be considered a consequential adjustment (Please refer Chapter 5, Income taxes for deferred
(due to application of Ind AS 109 to the loan) taxes on capitalised exchange differences. (ITFG 8,
and should be added to the deemed cost of its Issue 8). Also please refer Chapter 10, Other topics-
investment in the subsidiary. (ITFG 10, Issue 1) Earnings Per Share for consideration of amounts
This is consistent, in principle, with the clarifications debited to FCMITDA for computation of basic EPS
on consequential adjustments to deemed cost of (ITFG 10, Issue 5)
tangible and intangible assets. Paragraph D13AA of Ind AS 101, permits a first-time
(Please refer paragraphs I (c), (d) and (e) above). adopter to continue the accounting policy adopted

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 Ind AS Implementation Guide I 98

under previous GAAP for exchange differences c. Amortisation of FCMITDA on transition to Ind AS
arising from translation of long-term foreign Ind AS 109 provides guidance on the measurement
currency monetary items recognised in the financial of financial liabilities classified into the amortised
statements for the period ending immediately cost category and requires the application of the
before the beginning of the first Ind AS financial Effective Interest Rate (EIR) method to measure
reporting period. amortised cost. The application of this method may
The application of this exemption in Ind AS 101 gives result in a change in the carrying amount of a long-
rise to several practical implementation issues, term foreign currency liability on transition to Ind AS,
which are highlighted below. as compared to previous GAAP.
a. Applicability of exemption under paragraph If an entity applies the exemption in paragraph
D13AA of Ind AS 101 D13AA of Ind AS 101 and continues to accumulate
The option (under Ind AS 101) to continue with foreign exchange gains or losses on translation of
the accounting policy under paragraph 46/46A of such an item in FCMITDA, the balance in FCMITDA
AS 11, is available for only those long-term foreign should be revised retrospectively on the basis of the
currency loans that were taken/drawn down before amortised cost of the liability (as determined under
the beginning of the first Ind AS reporting period i.e. Ind AS 109 on the date of transition). The revised
1 April 2017 for a company falling within phase 2 of balance of FCMITDA should be amortised over the
the Ind AS adoption road map. (ITFG 1, Issue 3) and balance period of that long-term liability through the
(ITFG 7, Issue 1) statement of profit and loss. (ITFG 2, Issues 1 and 6)

b. Exemption under paragraph D13AA of Ind AS d. Exemption under paragraph D13AA on change
101 vis-a-vis borrowing costs under Ind AS 23 in functional currency

In case of a first-time adopter of Ind AS which would When the functional currency of a company
present its first Ind AS financial statements for the changes from INR to any other currency (e.g. USD),
financial year 2018-19, ITFG considered and clarified then any loans taken in the new functional currency
on exchange differences that qualify as borrowing (USD) would not be considered as long-term foreign
costs as per paragraph 6(e) of Ind AS 23, Borrowing currency monetary items under previous GAAP
Costs. In the given scenario, the relevant entity ( i.e. paragraph 46A of AS 11)
was exercising the option provided in paragraph Therefore, an entity cannot continue to recognise
46/46A of AS 11 and intended to continue to follow the exchange differences arising from those loans,
the same accounting policy in accordance with in the cost of fixed assets under paragraph D13AA
paragraph D13AA of Ind AS 101. of Ind AS 101. (ITFG 1, Issue 4)
e. Accounting policy for exchange differences to
A first-time adopter of Ind AS can continue to long-term forward exchange contracts
apply an accounting policy based on para 46A of
Companies that availed of the option to apply
AS 11 upon transition to Ind AS. When a company
paragraph 46/46A of AS 11 under previous GAAP
applies paragraph 46A of AS 11 then it does not
may have also capitalised foreign exchange
apply AS 16, Borrowing Costs to those exchange
differences on forward exchange contracts (covered
differences relating to long-term foreign currency
by paragraph 36 of AS 11) acquired to hedge long-
monetary items that otherwise qualify as being in
term foreign currency loans. This was permitted in
the nature of adjustments to interest cost within
accordance with the clarification issued by ICAI in
the meaning of paragraph 4(e) of AS 16.
its Frequently Asked Questions (FAQs) on the AS 11
notification.
Therefore, ITFG clarified that a company which However, the exemption in paragraph D13AA of Ind
wishes to continue to avail of the exemption provided AS 101 relates only to foreign exchange differences
by paragraph D13AA of Ind AS 101 would not be on long-term foreign currency monetary items
permitted to apply paragraph 6 (e) of Ind AS 23 to recognised in the financial statements prior to the
that part of exchange differences on such long-term first Ind AS financial reporting period and would
foreign currency monetary items. (ITFG 18, Issue1). not apply to long-term forward exchange contracts.
(ITFG 7, Issue 4)

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 99

a. Revenue-based amortisation for toll roads

Long-term forward exchange contracts would The ITFG clarified that in harmonisation of the
meet the definition of a derivative and are within Companies (Accounts) Rules, 2014, Ind AS 38 and
the scope of Ind AS 109. These derivatives Ind AS 101, the principles of Ind AS 38 should be
would have to be recognised at FVTPL unless followed for all intangible assets related to service
hedge accounting principles apply and these concession arrangements including toll roads once
are designated in a qualifying cash flow hedge Ind AS is applicable to an entity.
relationship under Ind AS 109.
Accordingly, revenue-based amortisation would,
generally, not apply to such intangible assets,
f. Application of hedge accounting principles except in accordance with paragraph D22 of Ind
where an entity avails an option under para 46A AS 101, which provides a specific exemption for
of AS 11 toll road intangibles recognised in the financial
statements before the beginning of the first Ind AS
On transition to Ind AS, an entity may continue to
reporting period. (ITFG 3, Issue 13)
capitalise foreign exchange differences arising on
translation of long-term foreign currency loans into b. Application of exemption to toll roads under
the cost of a related asset, in accordance with the construction
exemption in Ind AS 101. The entity may have also Another practical issue is with reference to
entered into derivative transactions (e.g. forward applicability of this exemption to toll roads under
contracts or cross currency swaps) to hedge the construction/development. The exemption applies
cash flows on the long-term foreign currency loan. only to intangible assets arising from toll-road
However, the entity would not be permitted to apply concession arrangements recognised in the
hedge accounting under Ind AS to such derivatives. financial statements before the beginning of first
This is because the entity is considered to have Ind AS reporting period.
no corresponding foreign exchange exposure An entity can not avail of the exemption if the
that affects profit or loss, since it capitalises the construction of the toll road is in progress on the
exchange differences. (ITFG 3, Issue 10) date of transition to Ind AS. This is because the
Also refer Chapter 9, Financial instruments. (ITFG 3, intangible asset in relation to toll road would not
Issue 10 and ITFG 13, Issue 8) have been recognised prior to the beginning of the
first Ind AS reporting period. (ITFG 7, Issue 9)
III. Clarifications with respect to application of the
exemption for service concession arrangements
Paragraph D22 of Ind AS 101 specifically permits
an entity to continue with its amortisation policy
adopted under previous GAAP for intangible assets
arising from service concession arrangements
in respect of toll roads. This, read with paragraph
7AA of Ind AS 38, permits an entity to continue
with revenue based amortisation for such
intangible assets (related to toll roads) recognised
in the financial statements for the period ending
immediately before the beginning of the first Ind AS
reporting period. This method of amortisation is not
permitted for intangible assets related to toll roads
that are recognised subsequently.

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 Ind AS Implementation Guide I 100

IV. Other clarifications • Financial instruments classified at amortised

The following are other significant application issues cost: The carrying amount of the instrument
arising from the implementation of the guidance in Ind should be computed on the date of transition
AS 101: to Ind AS, based on the previous GAAP carrying
amount at the date of business combination
a. Retrospective application of Ind AS 109 to (under previous GAAP) and the effective
financial instruments acquired in past business interest rate as on that date (determined after
combinations considering the amount and timing of expected
Ind AS 101 provides entities transitioning to settlement of such financial instrument). (ITFG
Ind AS with an option to not apply Ind AS 103, 12, Issue 9)
retrospectively to business combinations that b. Date of transition for presentation of opening
occurred before the date of transition to Ind AS. balance sheet
Where an entity acquires another entity in a scheme As per Ind AS 101, an entity is required to prepare
of amalgamation approved under the provisions and present an opening Ind AS balance sheet at the
of the 2013 Act, prior to its date of transition to Ind date of transition to Ind AS and this is the starting
AS and avails of the option to not restate its past point for its accounting.
business combinations, it considers the previous
GAAP carrying amounts of assets acquired and For example, the balance sheet of an entity with
liabilities assumed to be their deemed cost on the transition date as 1 April 2016 would be prepared as
date of transition to Ind AS. on date of transition to Ind AS i.e. the beginning of
business on 1 April 2016 (or, equivalently, close of
On the other hand, while preparing its opening business on 31 March 2016). (ITFG 8, Issue 3)
Ind AS balance sheet, Ind AS 101 requires an
entity to apply the criteria in Ind AS 109 to classify
financial instruments on the basis of the facts and ITFG clarified that on the date of transition to Ind
circumstances that exist at the date of transition AS, an entity would prepare its balance sheet as
to Ind AS. The resulting classifications are applied on the start of that day.
retrospectively.
c. Determination of date for assessing functional
While Ind AS 101 does not specifically provide currency
any transitional relief for financial instruments, it Ind AS 101 provides for certain exceptions and
also does not specify the accounting treatment exemptions from retrospective application of other
if an entity elects not to restate its past business Ind AS. However, there is no specific guidance
combinations, giving rise to an application issue. regarding the date of assessment for determination
of functional currency by an entity, i.e., whether
this would be assessed as on the date of transition
In this scenario, the previous GAAP carrying
to Ind AS or retrospectively. In accordance with
amounts of financial instruments acquired as part of
principles in Ind AS 101, since neither any exception
the business combination would be their deemed
nor any exemption has been provided, an entity
cost at the date of the business combination. The
would be required to assess its functional currency
fair value or amortised cost (as required by Ind
retrospectively. (ITFG 1, Issue 5)
AS 109) of such financial instruments should be
determined from the date of business combination d. Premium on redemption of financial liabilities
and not from the date of origination by the acquiree Companies may have adjusted redemption
company. Accordingly, the financial instruments premiums and/or other transaction costs incurred
would be measured in the following manner: on financial liabilities (as defined in Ind AS 109)
• Financial instruments classified as Fair Value issued before transition to Ind AS against the
Through Profit or Loss (FVTPL)/Fair Value securities premium account under previous GAAP.
Through Other Comprehensive Income (FVOCI): However, this is not permitted in Ind AS 109, which
Measured at their fair value on the date of requires such redemption premium and transaction
transition to Ind AS. costs to be adjusted in the EIR of the financial
liability.

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 101

Accordingly, ICAI clarified that the difference Although Ind AS 20 requires that the benefit of a
between the carrying amount of the financial liability government loan at a below-market rate of interest
(as per previous GAAP) on the date of transition and is treated as a government grant, such benefit
its amortised cost as on that date, computed as per (based on a retrospective restatement of the
the EIR method specified in Ind AS 109, should be loan amount at its fair value on initial recognition
adjusted by crediting the capital reserve account under Ind AS 109) would not be recognised for a
and the corresponding debit would be to the government loan existing at the date of transition,
relevant account which was credited earlier. (FAQ since Ind AS 101 does not permit such retrospective
dated 7 April 2017 issued by the ASB of ICAI). restatement.
A first-time adopter is required to use its previous
Companies that have previously adjusted GAAP carrying amount of government loan as the
the entire redemption premium against the Ind AS carrying amount on the date of transition.
securities premium account and recognised the It should apply the requirements of Ind AS 20
full repayable amount of the liability would be and Ind AS 109, prospectively to government
required to reverse the unamortised premium loans existing at the date of transition to Ind AS,
expense on transition to Ind AS. This would unless the necessary information needed to apply
subsequently be recognised as an interest the requirements of Ind AS 109 and Ind AS 20
expense through the statement of profit and retrospectively, has been obtained at the time of
loss over the remaining period until redemption. initially accounting for that loan. On prospective
This could have a significant impact on the application of Ind AS 109, the EIR of the loan
determination of future profits under Ind AS. should be computed by comparing the carrying
amount of the loan at the date of transition with the
amount and timing of expected repayment to the
e. Depreciation on first-time adoption government.
An entity, being a first-time adopter of Ind AS is Another important related issue is whether this
required by Ind AS 101 to measure its PPE on the exemption would apply to the deferment of a liability
date of transition either by retrospectively applying payable to government based on an agreement, i.e.
Ind AS 16 or at deemed cost (being either fair value liability similar to sales tax deferment for 10 years.
or previous GAAP carrying amount at the date of Often in such deferral schemes (e.g. where the
transition). amount of sales tax collected by an entity from its
If the entity elects to measure its PPE by customers is retained by the entity and is required
retrospective application of Ind AS 16, it is not to be repaid after a specified number of years) are
permitted to re-estimate its depreciation, unless its similar in nature to an interest-free loan. Hence, Ind
estimate of depreciation in the previous GAAP was AS 109 and Ind AS 20 should also be prospectively
in error. applied to such balances (e.g. deferred sales tax
liabilities) outstanding at the date of transition. (ITFG
However, when an entity has not estimated the
12, Issue 7).
useful life of its assets, but has depreciated its
assets as per the minimum requirements of law
(at the rates prescribed under Schedule XIV to the Entities are, therefore, not required to remeasure
Companies Act, 1956), then it would be required their deferred sales tax liabilities outstanding at
to re-compute the depreciation by assessing the the date of transition.
useful life of the asset in accordance with Ind AS 16.
(ITFG 3, Issue 14) g.. Business combination accounting in case of
acquisitions by first-time adopter
f. Accounting treatment of government loans at a
below-market rate of interest In the year 2009, an entity A Ltd. formed a
subsidiary B Ltd. by subscribing to 60 per cent of
Ind AS 101 requires a first-time adopter to apply
its share capital. Additionally, A Ltd. acquired 25 per
the requirements in Ind AS 109 and Ind AS 20
cent of share capital of B Ltd. during the month of
prospectively to government loans existing at the
October 2015. Subsequently, in the Financial Year
date of transition to Ind AS. Therefore, the carrying
(FY) 2017-18, A Ltd. transitioned to Ind AS with its
amount of government loan, under previous GAAP,
date of transition as 1 April 2017.
would continue to be recognised at the date of
transition to Ind AS.

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 Ind AS Implementation Guide I 102

Year 2009 Year 2015

Subscribed Additional
A Ltd. 60 per cent B Ltd. A Ltd. B Ltd.
25 per cent

As formation of B Ltd. was not a business h. First-time adopter of Ind AS - Transitional

combination, the following issues were raised: options under Ind AS 115
• Whether the option available to a first-time Under Ind AS transitional provisions could be found
adopter of Ind AS, to restate, or not restate, past at two places:
business combinations as per Ind AS 103 be The transitional provision contained in Ind AS 101 are
available in respect of B Ltd applicable to first-time adopter of Ind AS. A first-time
• Whether A Ltd. could account for the difference adopter does not apply the transitional requirements
between the consideration paid for the additional of individual standards unless specifically required
25 per cent shares in B Ltd. and the amount to do so. The transitional requirements of individual
of reduction in Non-Controlling Interests (NCI), standards are available to entities that already apply
directly in equity. Ind AS.
In this case, ITFG clarified that, requirements of Ind
AS 110 in respect of consolidation apply not only Ind AS 101 Individual standards
to those subsidiaries that were acquired by way
of business combinations but also those entities
In this regard, ITFG considered a situation where an
which were formed by the parent itself and have
entity (ABC Ltd.) complying with Ind AS for the first
been its subsidiaries ab initio.
time from 1 April 2018 is required to comply with Ind
Accordingly, Ind AS 110 would apply to changes in a AS 115 and whether a first-time adopter of Ind AS
parent’s ownership interest without loss of control could apply simplified transition method under Ind
of any subsidiary (acquired or formed by the parent). AS 115.
However, Ind AS 101 specifically prohibits
retrospective application of a certain requirement For existing Ind AS users Ind AS 115 provides
of Ind AS 110 (i.e. changes in a parent’s ownership following two methods of accounting at transition
interest in a subsidiary that do not result in the to Ind AS 115:
parent losing control of the subsidiary to be
accounted for as equity transactions). • The retrospective method (with or without
one or more of four practical expedients)
Consequently, ITFG clarified if case A Ltd. does not
restate its past business combinations, then the • The cumulative effect method (simplified
accounting treatment of purchase of the additional transition method).
interest in B Ltd. by A Ltd. in accordance with However, Ind AS 101 contains specific provisions
previous GAAP would continue (i.e., no adjustments dealing with the application of transitional
to the same would be made) while transitioning to provisions of Ind AS 115 by a first-time adopter.
Ind AS. (ITFG 19 Issue 1) A first-time adopter could apply the transitional
provisions contained in Ind AS 115 only to
the extent required or allowed to do so under
Appendices B-D of Ind AS 101. Appendix B-D
allows a first-time adopter to apply only the full
retrospective adoption method (with practical
expedients) given in Ind AS 115.

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 103

Therefore, ITFG clarified that a first-time adopter Ind AS for the first time when it prepares its financial
does not have the choice of applying the simplified statements for the accounting period beginning on 1
transition method. (ITFG 19, Issue 3) April 2019.
i. Accounting of operating leases of a subsidiary In the year 2014, A Ltd. acquired an Indian company
not capitalised by a first-time adopter parent as its subsidiary. The acquisition qualifies as a
An entity A Ltd. is a first-time adopter of Ind AS. Its business combination as per Ind AS 103.
date of transition is 1 April 2018 and it would apply

Acquired in 2014
A Ltd. Subsidiary
(parent) Business combination (which was lessee)

At the date of its acquisition, the acquired

subsidiary was a lessee in certain operating leases
which were not capitalised in the CFS prepared by Scenario I: The business
A in accordance with previous GAAP2. combination is restated
As a first-time adopter of Ind AS, A Ltd. is required
to apply Ind AS 101 in preparing its first Ind AS A Ltd. would need to account for the business
financial statements which would include, inter combination retrospectively from the acquisition date.
alia, an opening Ind AS balance sheet as at the Accordingly, it would be required to apply Ind AS 116 to
date of transition to Ind AS. acquired leases as if each of those leases were a new
lease at the acquisition date. However, an acquirer
In accordance with Ind AS 101, the general is exempted from recognition of Right-Of-Use (ROU)
requirement is retrospective application of the assets and lease liability in the following two cases:
standards in force at the end of an entity’s first Ind
• Leases for which the lease term (as defined in Ind
AS reporting period. However, there are certain
AS 116) ends within 12 months of the acquisition
optional exemptions from, and some mandatory
date or
exceptions to this general requirement.
• Leases for which the underlying asset is of low
value.
Accordingly, A Ltd. being a first-time adopter could,
A Ltd. would measure the lease liability in respect of
apply the transitional provisions contained in Ind AS
a lease at the acquisition date in accordance with Ind
116 only to the extent required or allowed to do so
AS 116. This would include measuring the lease liability
under Ind AS 101 requirements as follows:
at the present value of the lease payments that are
• Exemption from restating past business not paid at that date. The lease payments should be
combinations discounted using the interest rate implicit in the lease,
For business combinations that occurred before if that rate could be readily determined. If that rate
the date of transition, entities have the following cannot be readily determined, the lessee should use
choices: the lessee’s incremental borrowing rate.
– Restate all business combinations Further, ITFG has clarified that the incremental
borrowing rate would be determined with reference
– Restate all business combinations after a
to the acquisition date which represents the
particular date or
commencement date within the meaning of Ind
– Do not restate any of the business combinations. AS 116 in respect of leases acquired in a business
• Exemption from retrospective application of Ind combination.
AS 116
Ind AS 101 contains certain practical expedients 2. Ind AS 116 has superseded Ind AS 17 and is applicable for annual
in relation to Ind AS 116. Therefore, A Ltd. could reporting periods beginning on or after 1 April 2019
have taken the above choices and it would result in
following scenarios:

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 Ind AS Implementation Guide I 104

ITFG considered a situation where an Entity X at

Scenario 2: The business the time of first-time adoption of Ind AS, made
combination is not restated adjustments resulting from recognition of Deferred
Tax Asset (DTA) and Deferred Tax Liability (DTL)
directly in equity as required by the Ind AS 101.
In case the business combination is not restated, the
accounting treatment of the acquired leases in the first Subsequently, similar deferred tax adjustments
Ind AS CFS would be as follows: were made directly in equity at the time of initial
application of Ind AS 115 and Ind AS 116.
• Does not avail Ind AS 101 exemption: In case A
Ltd. does not select to avail of the exemption In the financial year 2019-20, Entity X decided to
provided by Ind AS 101 in respect of leases, it opt for the lower tax rate the Ordinance 2019. As a
would measure the lease liability and ROU asset result, DTA and DTL, to the extent unrealised/not
in respect of the acquired leases at the date settled, would be required to be remeasured.
of transition to Ind AS by applying Ind AS 116 The issue under consideration is whether entity X
retrospectively from the acquisition date. This Ltd. should recognise the resultant differences in
implies, inter-alia that the lease payments would amount of DTA and DTL arising from change in tax
be discounted using the interest rate implicit in the rates directly in equity.
lease, if that rate can be readily determined. If that The ITFG deliberated the intended meaning of terms
rate cannot be readily determined, the lessee’s ‘directly in equity’ and ‘transaction or event’ as
incremental borrowing rate determined with envisaged in Ind AS 12. Consequently, the emerging
reference to the acquisition date would be used. view was that the words ‘directly in equity’ relate to
• Avails Ind AS 101 exemption: In case A Ltd. selects the base transaction/event and the term ‘transaction
to avail of the exemption provided by Ind AS 101 or event’ refers to the source which gave rise to the
in respect of leases, it would measure the lease deferred tax implication.
liability and ROU asset in respect of the acquired The ITFG considered following examples with
leases at the date of transition to Ind AS by applying respect to the term ‘directly in equity’:
requirements of Ind AS 101. This implies, inter
alia, that the incremental borrowing rate to be • An entity at the time of first-time adoption of Ind
applied for measuring the lease liability would be AS restates a previous business combination.
determined with reference to the date of transition This was earlier accounted under previous
to Ind AS. (ITFG 21, Issue 4) GAAP on book value basis. As a result, the
entity recalculates the depreciation charge for
j. Accounting treatment of deferred tax items of PPE acquired as a part of the business
adjustments recognised in equity on first-time combination on the basis of fair value for the
adoption of Ind AS in accordance with Ind AS previous periods from the date of business
101, at the time of transition to Ind AS 115 and combination to the date of transition to Ind ASs
Ind AS 116 and adjusted the resultant increase (or decrease)
The principle laid down in Ind AS 12 for accounting in retained earnings (in cumulative depreciation)
of current and deferred tax effects is as follows: as on the date of transition to Ind AS. ITFG
Accounting for the current and deferred tax effects clarified that, in doing so, the entity, in effect,
of a transaction or other event is consistent with the restated the depreciation charge in profit or loss
accounting for the transaction or the event itself. for each of the previous periods from the date of
business combination to the date of transition to
Accordingly, an entity is required to account for tax Ind AS. (Had the entity presented comparative
consequences of transactions and other events in information for all such previous periods, the
the same way that it accounts for the transaction increased (or decreased) depreciation for a
and other events themselves. Thus, for transactions period would have reflected in statement of
and other events recognised in the statement of profit and loss for that period). Accordingly, it
profit and loss, any related tax effects are also was highlighted that the cumulative adjustment
recognised outside the statement of profit and to retained earnings at the date of transition to
loss (i.e. either in Other Comprehensive Income Ind AS is not an adjustment ‘directly in equity’.
(OCI) or directly in equity, any related tax effects are
also recognised either in OCI or directly in equity
respectively.

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 105

• An entity at the time of first-time adoption of

Ind AS remeasures certain equity investments
at Fair Value through Other Comprehensive
Income (FVOCI). Under previous GAAP, the
investments were measured at cost less
diminution (other than temporary in nature). The
resultant increase/decrease in carrying value of
investments were adjusted under an appropriate
equity head (e.g. OCI) on the date of transition
to Ind AS. ITFG clarified that in doing this, the
entity in effect, reflected the fair value changes
in OCI for each of the previous periods up to
the date of transition.(Had the entity presented
comparative information for all such previous
periods, the increase(or decrease) in the fair
value for a period would be reflected in OCI for
that period.). Accordingly, it was highlighted
that the cumulative adjustment to equity at the
date of transition to Ind AS is not a transaction
or event recognised ‘directly in equity’ and the
remeasurement of deferred tax on such item is
required to be recognised in OCI.
• An entity at the time of first-time adoption of Ind
AS adjusts the unamortised balance of costs of
issue of equity shares in an appropriate equity
head on the date of transition to Ind AS. The
adjustment was made in accordance with Ind
AS 32, Financial Instruments: Presentation
that ‘transaction costs of an equity transaction
shall be accounted for as a deduction from
equity’. Accordingly, ITFG clarified that were the
entity an existing adopter of Ind AS at the time
of issuance of the equity share, it would still
have adjusted the issue costs directly in equity.
Hence, it was highlighted that the adjustment
to equity at the date of transition to Ind AS is an
adjustment ‘directly in equity’. Additionally, the
remeasurement of deferred tax on such item is
required to be recognised directly in equity.
The ITFG clarified that entity is required to
determine (using the current accounting polices) the
underlying items (source transaction/events) with
respect to which deferred taxes were recognised
by it at the time of first-time adoption of Ind AS or at
the time of transition to Ind AS 115 or Ind AS 116.
Accordingly, ITFG concluded that depending on
the nature of an underlying item, the change in the
amount of the related deferred tax asset or deferred
tax liability resulting from the remeasurement of the
same at lower tax rates introduced by the Ordinance
2019 should be recognised in statement of profit
and loss, OCI or directly in equity. (ITFG 23, Issue 2)

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 Ind AS Implementation Guide I 106

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 107

Refer to educational material on Ind AS 101 for the following issues/topics:

Issue
Topic
number
1 Guidance on explicit and unreserved statement of compliance with Ind AS
2 Guidance on date of transition to Ind AS
Guidance on use of fair values as the deemed cost of fixed assets (whether this would be a
3
change in accounting policy)
Guidance on whether use of fair values as deemed cost and use of revaluation model in first
4
annual Ind AS financial statements would be a change in change in accounting policy
Few examples of the items that an entity may need to recognise, derecognise, remeasure,
5
reclassify on the date of transition
Guidance on cumulative translation differences and accumulated exchange differences
6
(prospective and retrospective options) (Similar to the ITFG 7, Issue 3)
Guidance on cumulative translation differences and accumulated exchange differences in case of
7
continuing with option exercised as per para 46/46A of AS 11 (Similar to ITFG 2, Issues 1 and 6)
Guidance on cumulative translation differences and accumulated exchange differences in case
8
option exercised as per Para 46/46A of AS 11 discontinued and apply Ind AS 21
Guidance on treatment of adjustment of foreign exchange fluctuation already capitalised to PPE
9 under previous GAAP on discontinuation of existing policy of capitalising exchange fluctuation on
long term foreign currency monetary items to fixed assets (Similar to ITFG 1, Issue 3)
Guidance on consolidation on transition to Ind AS with respect to an entity not a subsidiary/
10
associate/JV under previous GAAP
Guidance on restatement of past business combinations under Ind AS financials of holding and
11
subsidiary company
Guidance on retrospective adjustment of allocation of losses to NCI (whether required or
12
permitted)
Guidance on adjustment to goodwill arising on business combination on first-time adoption in
13
case an entity elects not to restate past business combination
Guidance on share-based payment transactions at the date of transition (treatment of vested and
14
unvested stock options)
15 Guidance on application of deemed cost on selective basis (Similar to ITFG 5, Issue 3)
Guidance on whether entities in a group could use different basis of arriving at deemed cost for
16
PPE in their respective SFS
Guidance on whether use of carrying value for PPE and fair value for intangible assets as deemed
17
cost permitted
Guidance on whether to use original cost or net book value (for the purpose of deemed cost) and
18
impact on future depreciation
Guidance on allocation of cost to component based on fair value when component wise breakup
19
of historical cost not available
Guidance on acceptable time gap for validity of revaluation under previous GAAP from the date of
20
transition
Guidance on acceptable time gap for validity of fair valuation under certain events from the date of
21
transition
Guidance on recognition of intangible assets (not recognised under previous GAAP) under Ind AS
22
on fair value basis on first-time adoption

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 Ind AS Implementation Guide I 108

23 Guidance on treatment of compound financial instruments on the date of transition

24 Guidance on previous GAAP for consolidation of foreign entity on transition to Ind AS
Guidance on restatement of past business combinations at a date prior to transition and
25
availability of deemed cost exemption for PPE
26 Guidance on first-time adoption exemptions for business combinations
Guidance on treatment of goodwill in CFS in case of step acquisition under previous GAAP
27
when past business are combinations are not restated and cases where restated
Guidance on significant accounting steps required for an entity which opted not to restate
28
business combinations
29 Guidance on significant implications of restating past business combinations
Guidance on accounting for change of classification of an entity from an associate to a
30
subsidiary in case past business combinations are not restated
Guidance on accounting for the change of classification of a subsidiary entity to an associate in
31
case past business combinations are not restated
Guidance on whether carrying amount of investments in a business combination transactions
32
would be adjusted
33 Guidance on sale of stake prior to date of transition (whether or not leading to loss of control)
Guidance on continuation of an adjustment of change in estimate (made in accordance with
34
previous GAAP) on transition date
Guidance on when an estimate was not required to be made as per previous GAAP on the tran-
35
sition date but required under Ind AS
Guidance on revision of estimates made under previous GAAP (in situations when no evidence
36
to suggest that original estimate was in error)
Guidance on derecognition of financial assets and liabilities (treatment of securitised loan assets
37
on transition)
Guidance on continuing hedge accounting on transition (when hedge transaction in previous
38
GAAP was a hedging instrument which is a written option)
39 Guidance on exemptions from the presentation and disclosure requirements in other Ind AS
40 Guidance on comparatives as per Ind AS in first Ind AS financial statements

41 Guidance on errors as per previous GAAP (rectification under Ind AS)

42 Guidance on explanation of change in accounting policies in first Ind AS financials

43 Guidance on disclosure with respect to deemed cost on transition date

Guidance on change in accounting policy post transition to Ind AS (after presenting its first
44 Ind AS interim financial statements but before presenting its first annual Ind AS financial
statements)
Guidance on disclosure requirements for the first interim financial reports prepared as per Ind
45
AS
46 Guidance on reconciliation from previous GAAP to Ind AS
Guidance on presentation of reconciliations with its previous GAAP SFS (where an entity did not
47
prepare CFS as per the previous GAAP)
48 Guidance on minimum reconciliations to be given as per Ind AS 101

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