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

Meera Foods Ltd's first Ind AS financial statements are for the year ending 31 March 2025. Which statement about what constitutes its first Ind AS financial statements is correct under Ind AS 101?

The first Ind AS financial statements are the first annual financial statements in which the entity adopts Ind AS in accordance with the Ind AS notified under the Companies Act, 2013. Interim reports, board resolutions or investor-specific statements do not by themselves qualify.

  1. AThey are the first annual financial statements in which the entity adopts Ind AS in accordance with Ind AS notified under the Companies Act, 2013Correct
  2. BThey are any interim report that first mentions Ind AS
  3. CThey are the statements prepared for the foreign investor, whichever is earlier
  4. DThey are the statements for the year in which the board resolves to adopt Ind AS, whether or not notified

Explanation

Ind AS 101 states that an entity's first Ind AS financial statements are the first annual financial statements in which it adopts Ind AS in accordance with the Ind AS notified under the Companies Act, 2013. Interim reports or investor-specific statements do not qualify, so options B and C are wrong.

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