This is the summary of IND AS 101 1st time Adoption of IND AS. Total 2 part is there. This is 1st Part. 2nd Part will upload soon.

1. Part 1
Presented by
ChitranshuRahul Srivastava
ACA, IFRS
Mumbai

2. Ensure that entity's First IND-AS financial statement and its interim financial reports contain high
quality information that:-
* is transparent & comparable for its users
* provide a Suitable Stating Point
* cost effective
Entity shall apply IND AS 101 in :-
* First IND AS Financial Statements
* Interim Financial Reporting (presented in accordance with IND AS -34 “Interim
Financial Reporting.”)
An entity shall prepare and present an opening IND-AS Balance Sheet at the date of transition to IND-
ASs.
Date of Transition is The beginning date of the earliest period for which an entity presents full
comparative information.

3. * Use same Accounting Policy throughout the all period of Reporting.
* Entity should comply with each IND AS
* However some exceptions from Retrospective application of few aspect of some
IND ASs & exemptions from some IND ASs is available.
* Entity should Not apply different versions of IND-ASs that were effective at earlier
dates.
* Entity May apply New IND-AS even not mandatory but permits early applications.
* Opening IND-AS balance Sheet shall recognize, reclassify & re-measure all the assets
& liabilities as per IND-AS.
* Any difference because of accounting policy (IND AS VS Previous GAAP) -
Adjust it directly from Retained Earnings (or, if appropriate, another category
of equity)

4. Estimates
* Estimates accordance with IND AS should consistent with Previous GAAP.
* However Any Accounting Policy adjustment because of IND-AS VS Previous
GAAP is allowed to consider retrospectively.
* Further any error in Previous estimation in previous GAAP FS identified with
Objective Evidence then the correction is permitted retrospectively.
* Any Information after the date of transition about estimates then treat it in the same
way of "IND AS-10 Events after the Reporting Period“.
Means information which is dated after the transition date, would not be use for
the date of transition unless require as an adjustments or errors.
* Any Estimate which require as per IND AS (Not require under previous GAAP)
would not apply retrospectively.

5. Others prohibitions on retrospective application as per Appendix B
(a) De-recognition of financial assets and financial liabilities Paragraphs - B2 & B3
(b) Hedge accounting Paragraphs - B4 - B6
(c) Non-controlling interests Paragraphs - B7
(d) Classification and measurement of financial assets Paragraphs - B8 - B8C
(e) Impairment of financial assets Paragraphs - B8D - B8G
(f) Embedded derivatives and Paragraphs - B9
(g) Government loans Paragraphs - B10 – B12

6. Exemptions for business combinations
As on IND AS transition date, there are some exemptions for IND AS 103 Business Combination.
Detail in Appendix C.
Exemptions from other IND-ASs
An entity may elect to use one or more of the exemptions which is available in INS AS 101. Listing
of topics in which such exemptions are available is as below :-
(a) Share-based payment transactions
(b) Insurance contracts
(c) Deemed cost
(d) Leases
(e) Cumulative translation differences
(f) Investments in subsidiaries, joint ventures and associates
(g) Assets and liabilities of subsidiaries, associates and joint ventures
(h) Compound financial instruments

7. (i) Designation of previously recognized financial instruments
(j) Fair value measurement of financial assets or financial liabilities at initial
….. recognition
(k) Decommissioning liabilities included in the cost of property, plant and
equipment
(l) Financial assets or intangible assets accounted for in accordance with
Appendix C to IND AS 115 Service Concession Arrangements
(m) Borrowing costs
(n) Extinguishing financial liabilities with equity instruments
(o) Severe hyperinflation
(p) Joint arrangements
(q) Stripping costs in the production phase of a surface mine
(r) Designation of contracts to buy or sell a non-financial item
(s) Revenue from contracts with customers ; AND
(t) Non-current assets held for sale and discontinued operations
Note :- An entity shall not apply these exemptions by analogy to other items.

8. This IND-AS 101 does not provide exemptions from the presentation and disclosure
requirements in other IND-ASs.
i.e. all presentation & disclosures need to be comply with respective IND-ASs
First time IND AS Financial Statements should include comparative information's for all
statement presented at least by :-
3 Balance Sheet
2 Statement of Profit & Loss
2 Statement of Cash flows
2 Statement of Changes in Equity & related notes

9. Some Entity presents historical summaries of selected data for periods prior to transition date of IND-AS.
Note that this kind of historical summary is not require.
Furthermore, If Comparative Information accordance with the previous GAAP as well as comparative
information required by IND AS 101 is presented then entity shall
* Label that previous GAAP Information as not being prepared in accordance with IND
AS.
* Disclose the nature & adjustment which would make it comply with IND AS.
(note that : Need not quantify)
Explain how the IND-AS conversion is affected its reported Balance Sheet, Financial Performance & Cash
flows.
For the purpose of explanation of transition to IND AS some reconciliations shall include with First IND AS
Financial Statements.

10. >> Reconciliations As on date Remark
 Equity Reported 1. As on Date of transition
2. End of most recent annual
FS accordance with the
previous GAAP.
 Total Comprehensive Income 1. End of most recent annual
(Starting point will be P/L if CI is FS accordance with the
not reported in previous GAAP) previous GAAP.
>> Any impairment loss recognized or reversed in IND AS Financial Statement then disclosures
require as per "IND-AS 36 “Impairment of Assets“.
* Should be good
enough to explain the
material adjustments to
the user of FS.
* Any error in previous
GAAP FS which
corrected in IND AS FS
Should be shown
separately in
reconciliations

11. >> If Deemed cost of PPE, Investment properties or Intangible assets is :-
* carrying value as per Previous GAAP
Then disclose the Fact & Accounting Policy until those assets significantly depreciated,
impaired or derecognized from the entity's balance sheet.
* Fair Value
Then disclose the Aggregate of those fair values & Adjustment in carrying amount
reported under previous GAAP.
Note :- All the above points of reconciliations are applicable for Interim Financial Reporting
as well.

12. Entity is permitted to designate a previously recognized financial assets/liabilities as financial
assets/liabilities measured at fair value through profit / Loss .
Disclosure :-
Fair Value of the financial assets so designated at the date of designation
Carrying amount in Previous GAAP financial Assets
Classification in Previous GAAP FS
If entity uses fair value for PPE, an investment property or an intangible assets the disclosure
requirement is :-
* The aggregate of those fair values; and
* The aggregate adjustment to the carrying amounts reported under previous GAAP.

13. Entity uses deemed cost for an investment in a subsidiary, joint venture or associate
then Disclosure requirement is :-
* Aggregate of carrying amount of deemed cost
* Aggregate of fair value amount of deemed cost
* Aggregate of adjustment to the carrying amount reported under
previous GAAP.
If an entity elects to measure assets and liabilities at fair value as the deemed cost because
of severe hyperinflation the entity‟s first IND AS financial statements shall disclose an
explanation of how, and why, the entity had, and then ceased to have, a functional currency
that has both of the following characteristics :-
(a) a reliable general price index is not available to all entities with
transactions and balances in the currency.
(b) exchangeability between the currency and a relatively stable foreign
currency does not exist.

14. * Any additional Recognition of Assets / Liability which was not in previous GAAP then
resulting change will be adjusted through
IN IND AS :- Retained Earnings, Goodwill or capital Reverse
IN IFRS :- Retained Earnings or Goodwill
* Some Optional Exemptions is in addition in IND AS i.e. Long-term foreign currency
monetary items (Paragraph D13AA) and Service Concession Arrangements relating to
toll roads (Paragraph D22).
* There are some „Short-term exemptions from IFRSs‟ in IFRS 1 Appendix E. No such
short term exemptions in IND AS 101.
* Different Terminologies between IND AS & IFRS
In IND AS IN IFRS
Balance Sheet Statement of Financial Position
Statement of profit and loss Statement of comprehensive income

15. Thankyou
In case of any query or suggestions please contact
Chitranshu Rahul Srivastava
CA, IFRS
Email IDs
crsri90@gmail.com