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CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

A student comparing Ind AS 111 with IFRS 11 notes that paragraphs C1A and C1AA of IFRS 11, which relate to transitional provisions, are absent from Ind AS 111. What is the reason given in Appendix 1 to Ind AS 111?

The transitional provisions are not repeated in Ind AS 111 because, where considered appropriate, they are included in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1. Paragraph numbering is still retained to stay consistent with IFRS 11.

  1. AThe paragraphs were deleted because transition is not relevant to joint arrangements in India
  2. BThe transitional provisions are included in Ind AS 101, First-time Adoption of Indian Accounting Standards, where considered appropriateCorrect
  3. CThe paragraphs are replaced by a requirement to restate all prior joint arrangements at fair value
  4. DThe transitional provisions are left to the discretion of each reporting entity

Explanation

Appendix 1 states that paragraphs C1A and C1AA were not included because transitional provisions, wherever considered appropriate, are included in Ind AS 101 corresponding to IFRS 1. Paragraph numbers are nevertheless retained in Ind AS 111 for consistency with IFRS 11. So the omission is not because transition is irrelevant or discretionary.

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