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CA Final · Financial Reporting · Financial Instruments: Disclosures

Sundaram Textiles Ltd prepares its financial statements under Ind AS. The finance team notices that the notified Ind AS 107 does not contain the transitional provisions found in IFRS 7. According to the comparison of Ind AS 107 with IFRS 7, why were those transitional provisions not included?

The transitional provisions of IFRS 7 are omitted from Ind AS 107 because all transitional provisions relating to Ind ASs, wherever considered appropriate, have been placed in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1.

  1. ABecause all transitional provisions related to Ind ASs, wherever considered appropriate, have been included in Ind AS 101Correct
  2. BBecause transitional relief is available only to companies listed on stock exchanges
  3. CBecause Ind AS 107 applies only to financial instruments acquired after the first Ind AS reporting date
  4. DBecause the Ministry of Corporate Affairs requires each standard to be applied retrospectively without exception

Explanation

The comparison with IFRS 7 states that the transitional provisions of IFRS 7 were not given in Ind AS 107 because all transitional provisions for Ind ASs, wherever considered appropriate, are included in Ind AS 101 First-time Adoption of Indian Accounting Standards. The other options invent reasons that do not appear in the standard.

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