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

Sundaram Pharma Ltd adopts Ind AS for the first time. Its first Ind AS financial statements must be prepared on which basis, per Ind AS 101?

The first Ind AS financial statements are the first annual financial statements in which the entity adopts Ind AS as notified under the Companies Act, 2013. Interim statements or voluntary lender reports do not count, since Ind AS 101 specifies annual statements adopting the notified standards.

  1. AAny interim financial statements issued under Ind AS in the preceding year
  2. BThe first annual financial statements in which the entity adopts Ind AS in accordance with Ind AS notified under the Companies Act, 2013Correct
  3. CFinancial statements prepared for lenders using Ind AS voluntarily without a statement of compliance
  4. DFinancial statements for the transition date alone

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 notified under the Companies Act, 2013. Unlike IFRS 1, it does not list varied examples. Interim reports or lender packs do not qualify as the first Ind AS financial statements.

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