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CA Final · Financial Reporting · Introduction to Indian Accounting Standards

Vindhya Steels Ltd became covered by Ind AS for the year beginning 1 April 2024 and its opening Ind AS balance sheet is as at 1 April 2023. It earlier followed AS. In its first Ind AS financial statements for the year ended 31 March 2025, which treatment is correct as regards comparative information and framework?

The entity must restate comparatives under Ind AS for the year ended 31 March 2024 and prepare an opening Ind AS balance sheet at the date of transition, 1 April 2023. The date of transition is the start of the earliest comparative period presented, so previous GAAP comparatives cannot simply be carried forward.

  1. APresent one year of Ind AS comparatives only for the profit and loss, with opening balance sheet at 1 April 2024
  2. BPresent comparatives for 31 March 2024 prepared under Ind AS, and an opening Ind AS balance sheet as at 1 April 2023Correct
  3. CPresent previous GAAP comparatives unchanged, since the transition applies only prospectively
  4. DPresent opening balance sheet as at 31 March 2025 and no comparatives

Explanation

Under the transition requirements the date of transition is the beginning of the earliest comparative period, here 1 April 2023. The first Ind AS statements must therefore show Ind AS comparatives for the year ended 31 March 2024 and an opening Ind AS balance sheet as at 1 April 2023. Previous GAAP comparatives are not retained unadjusted.

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