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CA Final · Financial Reporting · Ind AS 103 Business Combinations

Kaveri Textiles Ltd is preparing its first Ind AS financial statements and is unsure where to look for the transitional relief it can apply to business combinations that occurred before its date of transition. According to the Appendix comparing Ind AS 103 with IFRS 3, where are the transitional provisions on this matter located?

The transitional provisions are in Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 103 omits the IFRS 3 transitional provisions because all relevant transitional provisions for Ind ASs are placed in Ind AS 101, which corresponds to IFRS 1.

  1. AIn Ind AS 103 itself, in the paragraphs corresponding to IFRS 3 transitional provisions
  2. BIn Ind AS 101, First-time Adoption of Indian Accounting StandardsCorrect
  3. CIn Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors
  4. DIn Appendix C of Ind AS 103

Explanation

The comparison appendix states that the transitional provisions given in IFRS 3 are not included in Ind AS 103 because all transitional provisions related to Ind ASs, where considered appropriate, are in Ind AS 101. Ind AS 101 corresponds to IFRS 1 and deals with such matters. Appendix C relates to common control combinations, not transition.

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