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

Orion Retail Ltd is a first-time adopter and elects to apply the transition provisions of Ind AS 115 available under Ind AS 101. How must the 'date of initial application' be interpreted?

The date of initial application is read as the beginning of the first Ind AS reporting period. A first-time adopter choosing the Ind AS 115 transition provisions treats that date as the reference point and 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 end of the first Ind AS reporting period
  4. DThe date on which the contract with the customer was signed

Explanation

Under Ind AS 101 Appendix D, a first-time adopter may apply the transition provisions in paragraph C5 of Ind AS 115, reading 'date of initial application' as the beginning of the first Ind AS reporting period. The date of transition is an earlier date, so it is wrong. If the adopter elects these provisions, it must also apply paragraph C6 of Ind AS 115.

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