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CA Final · Financial Reporting · Ind AS 101 First-time Adoption of Ind AS

Himalaya Retail Ltd is a first-time adopter of Ind AS and its first Ind AS reporting period begins on 1 April 2025. It chooses to apply the transition provisions of paragraph C5 of Ind AS 115 for revenue contracts. For this purpose, what does 'date of initial application' mean under Ind AS 101?

The date of initial application is interpreted as the beginning of the first Ind AS reporting period, which is 1 April 2025 for Himalaya Retail. It is not the transition date or the approval date. An entity using these provisions must also apply paragraph C6 of Ind AS 115.

  1. AThe beginning of the first Ind AS reporting periodCorrect
  2. BThe date of transition to Ind AS
  3. CThe date on which the board approves the first Ind AS financial statements
  4. DThe end of the first Ind AS reporting period

Explanation

Ind AS 101 (Appendix D, revenue) permits use of the C5 transition provisions of Ind AS 115 and says references to the date of initial application are read as the beginning of the first Ind AS reporting period. So here it is 1 April 2025, not the transition date. If the entity uses these provisions, it must also apply paragraph C6 of Ind AS 115.

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