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Important Stuff on Ind AS 101, First-time Adoption of Indian Accounting Standards

Indian Accounting Standard (Ind AS) 101, First-time Adoption of Indian Accounting Standards, Important Material

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IND AS 101: First-time Adoption of Indian Accounting Standards

The Indian GAAP consists of existing Accounting Standards. As per the roadmap issued by the MCA, some specified Indian companies, Banks and Insurance entities have to follow the Ind AS which are converged IFRSs.

An entity following Accounting Standards as per Indian GAAP if has to follow Ind AS, there would be some challenges faced by the entity like, at what value the assets and liabilities is to be carried at the date of transition to Ind AS, if these values are to be changed whether it should be with retrospective effect or prospective in effect.

There may be certain existing assets or liabilities which may not be considered as assets or liabilities as per Ind AS, what should be the treatment of such assets or liabilities. Further, there may be assets or liabilities as per Ind AS on the transition date but these are not the assets or liabilities as per the Indian GAAP. These issues are to be addressed by Ind AS 101.


(a) To explain the procedure of transition
(b) To remove all difficulties of retrospective applications of certain Ind AS
(c) To explain the accounting treatment of the resultant differences, in the carrying amount of various assets and liabilities, if there is any.


(a) It is applicable to the first set of Financial Statements that contain an explicit and unreserved statement of compliance with Ind ASs.
(b) This Ind AS applies to any interim financial statement for a period that is covered by those first financial statements that are prepared under Ind As.

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