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

Vistara Foods Ltd is preparing its first Ind AS financial statements and wants to use the transition provisions of Ind AS 115 (paragraph C5) permitted for first-time adopters. How should 'date of initial application' in those provisions be read, and what else must it apply?

The date of initial application is read as the beginning of the first Ind AS reporting period. An entity choosing the Ind AS 115 paragraph C5 transition provisions must also apply paragraph C6 of Ind AS 115.

  1. AAs the date of transition to Ind AS; no other paragraph applies
  2. BAs the beginning of the first Ind AS reporting period; it must also apply paragraph C6 of Ind AS 115Correct
  3. CAs the end of the first Ind AS reporting period; paragraph C6 is optional
  4. DAs the date of incorporation; it must also apply paragraph C6

Explanation

Ind AS 101 allows a first-time adopter to apply the transition provisions in paragraph C5 of Ind AS 115. References to the date of initial application are read as the beginning of the first Ind AS reporting period. If the entity uses these provisions, it must also apply paragraph C6 of Ind AS 115. Reading it as the transition date is wrong.

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