International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board

1. Presented By
1
IND AS 101
FIRST TIME ADOPTION OF
INDIAN ACCOUNTING STANDARDS
Arun Kumar
Diploma in IFRS, Ramanujan College, University of Delhi
Course Presentation
29th April, 2017

2. IFRS: An Introduction
What is IFRS?
International Financial Reporting
Standards (IFRS) is a set of accounting
standards developed by an
independent, not-for-profit organization
called the International Accounting
Standards Board (IASB).
Adoption or Convergence to IFRS?
 Adoption: Means that the country applying
IFRS would be implementing IFRS in the
same manner and with the 100% same
guidelines as issued by the IASB.
 Convergence: Means that the accounting
standard board of country applying IFRS
would work together with IASB to develop
high quality compatible accounting
standards' overtime. India is converging to
IFRS.
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3. Why India needs IFRS?
It is used in
more than
130 countries
One
Language
Easy access to
global capital
markets
Low cost of
capital
Attract
Foreign
investment
More Visible
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4. Ind AS 101: Contents
DisclosuresCarveouts
Mandatory
exceptions
Optional
exemptions
Introductio
n to Ind AS
101
Implement-
ation
Roadmap
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5. Implementation Roadmap
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1 April 2015
• Voluntary adoption permitted with
one year comparative.
1 April 2016 (Mandatory)
• Phase I companies, Companies
whose net worth is 5 billion or
more;
• Holding, Subsidiary;
Associate and Joint venture
companies of above.
1 April 2017 (Mandatory)
• Phase II companies, Listed/ Companies in the
process of listing whose net worth is less than
5 billion.
• Unlisted Companies having net worth of 2.5
billion or more but less than 5 billion.
• Holding, Subsidiary, Associate and Joint
venture companies of above.
Points to be remember
Alarming dates for Phase I Companies.

6. Roadmap For Banks, Insurance Companies
and NBFCs
 Roadmap drawn-up for implementation of Ind AS converged with IFRS for scheduled
Commercial Banks (Excluding RRBs), Insurance Companies and NBFCs
 Scheduled commercial banks (Excluding RRBs) Starting from 1st April 2018 with comparative with 31st
March 2018.
 Insurer/Insurance Companies Starting from 1st April 2018 with comparative with 31st March 2018.
 NBFCs: Implementation in 2 phases.
 Other will continue to apply existing AS (IGAAP).
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7. Introduction to
Ind AS 101
FIRST TIME
ADOPTION OF
INDIAN
ACCOUNTING
STANDARDS
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8. Objective
First Ind AS
Financial
Statements
First Ind AS
Interim Financial
Statements
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Transparent for Users &
Comparable over all periods
Starting Point for
Accounting Under Ind AS
Generated at Cost < Benefit to
Users
Contain high
quality
information that is

9. Scope
Apply Ind AS
101 in
First Ind AS
Financial
Statements
Each Interim
Financial Report
in Accordance
with Ind AS 34
9
This Ind AS does not apply to changes in
accounting policies made by an
entity that already applies Ind ASs

10. 5 Step Process
Identification
of the date of
Transition
Selection of
accounting
policies that
comply with
Ind AS
Preparation of
Opening Ind AS
Balance Sheet
(using optional
exemptions and
mandatory
exceptions)
Preparation of
the first Ind
AS financial
Statements
Presentations,
Reconciliations
and Disclosures
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4
1
2
3
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11. Step 1 – Date of Transition
Date of transition to Ind AS is the beginning of
the earliest period for which an entity presents
full comparative information under Ind ASs in
first Ind AS financial statements
Entity A:
 will produce its first Ind AS financial statements for its annual
period ending on 31 March 2018, therefore 31 March 2018
will be the end of the first Ind AS reporting period
 will present one year of comparative figures, therefore 1
April 2016 will be the date of transition to Ind ASs
 has quarterly reporting requirements, therefore the first period
covered by its Ind AS financial statements will be the first
interim report covering the quarter ended 31 June 2017 that
complies with IAS 34 Interim Financial Reporting.
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Example
First IFRS reporting period is the latest period
covered by an entity's first IFRS financial
statements.
Date of transition
to Ind AS
End of first Ind
AS reporting
period
1/4/2016 31/3/2017 30/6/2017 31/3/2018

12. Step 2 – Accounting Policies
 An entity shall use the same accounting policies in its opening Ind AS Balance Sheet and
throughout all periods presented in its first Ind AS financial statements. Those accounting policies
shall comply with each Ind AS effective at the end of its first Ind AS reporting period
 An entity may apply a new Ind AS that is not yet mandatory, if it permits early application.
 All the accounting standards need to be applied retrospectively, other than exclusions by optional
exemptions and mandatory exceptions
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13. Step 3 – Opening Ind AS Balance Sheet
• Customer related intangible assets
while restating business combinations
• Share based payment transactions
with non employees
Recognize all assets
& liabilities required
to be recognized by
Ind AS
• Proposed Dividend
Derecognize all assets
& liabilities not
permitted by Ind AS
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Recognize
Derecognize

14. Step 3 – Opening Ind AS Balance Sheet
• Redeemable preference shares that
would earlier be classified as equity
• NCI which would earlier be
classified outside equity
Reclassify all items
in accordance with
Ind AS
• Discounting of long term provisions
• Measurement of deferred income
taxes for all temporary differences
instead of timing differences
Measure all assets
& liabilities in
accordance with
Ind AS
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Reclassify
Measure

15. Step 4 – First Ind AS Financial Statements
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The first annual financial statements in which
an entity adopts Indian Accounting Standards
(Ind ASs), by an explicit and unreserved
statement of compliance with Ind ASs.

16. Step 5 – Presentation, Reconciliations
& Disclosures
This Ind AS does not provide exemptions from the presentation
and disclosure requirements in other Ind ASsPresentation
An entity shall explain how the transition from previous GAAP to
Ind ASs affected its reported Balance sheet, financial performance
and cash flows.
Transition
An entity shall explain how the transition from previous GAAP to
Ind ASs affected its reported Balance sheet, financial performance
and cash flows.
Previous Period
Statements
If an entity becomes aware of errors, the reconciliations and
disclosures required by Ind AS 101 should distinguish correction
of those errors from changes in accounting policy
Errors
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17. Example: Bharti Infratel, Q-1, 2016-17
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18. Optional
Exemptions
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19. 19
Business
Combinations
PPE, Investment
Properties,
Intangibles
Cumulative
translation
differences
Leases
Share-based
payments
Compound
Financial
Instruments
Assets and
liabilities of
subsidiaries,
associates and joint
ventures
Investments in
subsidiaries,
associates and joint
ventures
FV measurement of
financial assets or
financial liabilities
at initial recognition
Designation of
previously
recognised
financial
instruments
Designation of
contracts to buy or
sell a non-financial
item
Extinguishing
financial liabilities
with equity
instruments
Insurance contracts
Service
concessions
arrangements
Revenue
Severe
hyperinflation
Joint arrangement Stripping cost
Non-current assets
held for sale and
discontinued
operations
Decommissioning
liabilities
Ind AS 101 - Optional Exemptions Summary

20. Ind AS 101 - Optional Exemptions Summary
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Ind AS 103 need not be applied to combinations before date of transition
• BUT, if one combination is restated, after a particular date of choice, all subsequent combinations need
to be restated
When the exemption is used
• No change in classification
• Post combination carrying amount deemed cost for assets and liabilities measured at cost
• Assets and liabilities measured at fair value restated at date of transition – adjust retained earnings
Business
Combinations

21. Ind AS 101 - Optional Exemptions Summary
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Business
Combinations
Assets and liabilities not recognised at the time of a business combination under previous GAAP are:
• Recognized as if subsidiary adopted Ind ASs at the same date
Subsidiaries not consolidated under previous GAAP are:
• Consolidated as if subsidiary adopted Ind ASs at the same date
• Goodwill is the difference between cost of investment and net assets recognised at date of transition

22. Ind AS 101 - Optional Exemptions Summary
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Business
Combinations
Goodwill is recognised at the carrying amount under previous GAAP and adjusted for
• Intangibles that are not recognised under Ind AS
• Intangibles that must be recognised under Ind AS
• Contingent consideration not recognised; and
• Tested for impairment
Goodwill deducted from equity remains in equity

23. Ind AS 101 - Optional Exemptions Summary
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Property, Plant & Equipment
For property, plant and equipment, an entity can choose to measure the value using:
• Carrying value as per previous GAAP (para D7AA of Ind AS 101).
• Cost in accordance with Ind AS.
• Fair value at the date of transition as deemed cost.
• A revaluation carried out at a previous date (like a IPO) less accumulated depreciation till the date of
transition as deemed cost, subject to certain conditions.
This exemption can also be applied to intangible assets that meet the criteria for revaluation in Ind AS 38
and to investment properties where the cost method in Ind AS 40 is applied. The exemption may not be
used for any other assets or for liabilities.
If a company elects option under para D7AA, then its Ind AS financial statement will not qualify to be
compliant with IFRS.

24. Example: Impact on RIL
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25. Ind AS 101 - Optional Exemptions Summary
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Other Key Exemptions
Exemption Impact
Cumulative translation
differences
The cumulative translation reserve may be reset to zero.
Leases A company may elect to assess whether an arrangement contains a lease at the
date of transition, rather than at the inception of the arrangement.
Share-based payment
transactions
A company may choose (but is not required) to apply Ind AS 102 to any equity
instruments that were granted before date of
transition to Ind ASs.
In addition, a company may choose (but is not required) to apply
Ind AS 102 to a liability relating to a cash-settled share-based payment that was
settled prior to the date of transition to Ind AS.
Compound financial
instruments
A compound financial instrument does not need to be bifurcated if the liability
component is not outstanding at the transition date.

26. Ind AS 101 - Optional Exemptions Summary
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Other Key Exemptions
Exemption Impact
Assets and liabilities of
subsidiaries,
associates and joint
ventures
A subsidiary that adopts Ind AS later than its parent can elect to apply Ind AS 101 or to
use the carrying amounts of its assets and liabilities included in the consolidated
financial statements, subject to eliminating any consolidation adjustments.
If a parent adopts Ind AS later than its subsidiary, the parent, in its consolidated financial
statements, must measure the assets and liabilities of the subsidiary at the same carrying
amounts as in the Ind AS financial statements of the subsidiary, adjusting for normal
consolidation entries.
Investments in
subsidiaries, jointly
controlled entities and
Associates
In their separate financial statements, first-time adopters can measure their investment in
subsidiaries, jointly controlled entities and associates at either:
• Cost, determined in accordance with Ind AS 27;
• fair value at the Ind AS transition date, or
• Deemed cost, defined as previous GAAP carrying amount at the Ind AS transition
date.

27. Mandatory
Exceptions
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28. MANDATORY EXCEPTIONS UNDER IND
AS 101
Use of estimates
Hedge
accounting
De-recognition of
financial assets
and financial
liabilities
Some aspects of
accounting for
non-controlling
interests
Classification
and
measurement of
financial assets
Impairment of
financial assets
Embedded
derivatives
Government
loans
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29. USE OF ESTIMATES
Estimate Required by PreviousGAAP
 Estimates in accordance with Ind ASs at the date of transition to Ind ASs shall be consistent
with estimates made for the same date in accordance with previous GAAP (after adjustments
to reflect any difference in accounting policies),unless there is objective evidence that those
estimates were in error.
 Information received after the date of transition to Ind AS about estimates that it had made
under previous GAAP .
 To be treated as non-adjusting events after the reporting period in accordance with Ind AS 10
Events after the Reporting Period.
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30. Estimates -Not Required under Previous
GAAP but required under Ind AS
In case an entity has not made an estimate since it was not required to be
made as per the previous GAAP, whether the entity should now make an
estimate under Ind AS?
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Example
Yes, the entity is required to make an estimate even if this was not required
under previous GAAP. To achieve consistency with Ind AS 101, the
estimates in accordance with Ind AS should reflect conditions that existed
at the date of transition to Ind AS.

31. An entity shall not reflect in its opening Ind-AS Balance Sheet a hedging relationship of a type
that does not qualify for hedge accounting in accordance with Ind AS 39.
For example, many hedging relationships where the hedging instrument is a cash instrument or
written option; where the hedged item is a net position; or where the hedge covers interest risk in
a held-to-maturity investment.
However, if an entity designated a net position as a hedged item in accordance with previous
GAAP, it may designate an individual item within that net position as a hedged item in accordance
with Ind-ASs, provided that it does so no later than the date of transition to Ind-ASs.
Hedge Accounting
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32. Derecognition of Financial Assets &
Financial Liabilities
 A first-time adopter should apply the de-recognition requirement in
Ind AS 109 prospectively to transactions occurring on or after
transition date.
 A first-time adopter that derecognised non-derivative financial
assets and liabilities under its previous GAAP before transition
date, will not recognise these items under Ind AS even if these
meet the Ind AS 109 recognition criteria.
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33. Non Controlling Interest
First-time adopter shall apply the following requirements of Ind AS 110 prospectively from the date of
transition to Ind AS.
 the requirement that total comprehensive income is attributed to the owners of the parent and to the non-
controlling interests even if this results in the non-controlling interests having a deficit balance.
 the requirements for accounting for changes in the parent’s ownership interest in a subsidiary that do not
result in a loss of control.
 the requirements for accounting for a loss of control over a subsidiary and the related requirements of
paragraph 8A of Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations.
 However, if a first-time adopter elects to apply Ind AS 103 retrospectively to past business combinations, it
also shall apply Ind AS 110
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34. Other Exceptions
 CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS:
Assessment for classification and measurement of financial assets needs to be based on the facts and
circumstances exist on the date of transition to Ind AS.
 IMPAIRMENT OF FINANCIAL ASSETS:
Impairment requirements as per Ind AS 109 needs to apply retrospectively subject to certain
exceptions.
 GOVERNMENT LOANS:
Requirement of Ind AS 20 and Ind AS 109 are applied prospectively. It can be applied retrospectively, if
information was obtained at the time of initial recognition.
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35. Carveouts
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36. Carve Outs
 (Ind AS 101 and Ind AS 38)
Permission to continue with the accounting policy adopted for amortization of
intangible assets arising from service concession arrangements related to toll roads.
 (Ind AS 101 and Ind AS 21)
Permission to continue the accounting policy adopted for accounting for exchange
differences arising from translation of long-term foreign currency monetary items .
 (Ind AS 101)
Use of carrying cost of Property, Plant and Equipment on the date of transition of First-
time Adoption of Ind AS is permitted.
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37. Carve Outs
 (Ind AS 103)
Bargain purchase gain arising on a business combination to be treated as Capital Reserve
under Ind AS.
 (Ind AS 1)
Classification of a loan liability in case of breach of a loan condition.
 (Ind AS 17, Leases)
Carve-out regarding recognition of lease rentals.
Carve Outs
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38. Carve Outs
 (Ind AS 28)
Uniform accounting policies may not be used by investor of an associate in case
it is impracticable.
 (Ind AS 32)
Classification of Foreign Currency Convertible Bonds(Financial Instruments
Presentation).
 (Ind AS 40)
Fair value model for investment property not permitted.
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39. Disclosures
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40. Disclosures
 First time adopter shall explain how the transition from Previous GAAP to Ind AS affected its Financial
position, performance and cash flows.
 Reconciliations of its equity reported under previous GAAP to its equity under Ind AS at:
- The date of transition to Ind AS ; and
- The end of the latest period presented in the equity's most recent annual financial statements
under previous GAAP
 A reconciliation of its total comprehensive income under Ind AS for the latest period in the equity's most
recent annual financial statements to its total comprehensive income, or if not available, to its profit or loss
under previous GAAP for the same period.
 An explanation of the material adjustments to the cash flow statements, if it presented one under its
previous GAAP .
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41. Any Questions?
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42. Thank You 
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