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CA Final · Financial Reporting · Financial Instruments: Disclosures

Bharat Pharma Ltd is adopting Ind AS for the first time. Its accountant asks where the transitional provisions relating to Ind AS 107 are found. As per Appendix 1 to Ind AS 107, which statement is correct?

The transitional provisions of IFRS 7 are not given in Ind AS 107. Appendix 1 explains that all transitional provisions relating to Ind AS, wherever considered appropriate, are included in Ind AS 101, First-time Adoption of Indian Accounting Standards.

  1. AThey are included within Ind AS 107 as in IFRS 7
  2. BThey are not given in Ind AS 107; wherever appropriate they are included in Ind AS 101Correct
  3. CThey are given in Ind AS 1
  4. DThey are omitted entirely from Ind AS

Explanation

Appendix 1 states that IFRS 7 transitional provisions are not in Ind AS 107 because all Ind AS transitional provisions, where appropriate, are in Ind AS 101. They are not omitted entirely, which is the key wrong option.

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