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Ind AS 101: First-time Adoption of Indian Accounting Standards
To ensure that an entity’s first Ind AS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:
(a) is transparent and comparable over all periods presented;
(b) provides a suitable starting point for accounting in accordance with Ind ASs; and
(c) its cost does not exceed the benefits.
An entity shall apply Ind AS 101 in its first Ind AS financial statements and each interim financial report, if any, that it presents in accordance with Ind AS 34, Interim Financial Reporting, for part of the period covered by its first Ind AS financial statements.
Ind AS 101 defines various terms used in the Standard. These are contained in Appendix A to Ind AS 101. These definitions are important to understand the requirements of Ind AS 101. Some of the key definitions are given below:
Date of transition to Ind AS: The beginning of the earliest period for which an entity presents full comparative information under Ind AS in first Ind AS financial statements.
Deemed cost: An amount used as a surrogate for cost or depreciated cost at a given date. Subsequent depreciation or amortisation assumes that the entity had initially recognised the asset or liability at the given date and that its cost was equal to the deemed cost.
First Ind AS financial statements: The first annual financial statements in which an entity adopts Ind AS, by an explicit and unreserved statement of compliance with Ind ASs.
First Ind AS reporting period: The latest reporting period covered by an entity’s first Ind AS financial statements.
First-time adopter: An entity that presents its first Ind AS financial statements.
Opening Ind AS balance sheet: An entity’s balance sheet at the date of transition to Ind ASs.
Previous GAAP: The basis of accounting that a first-time adopter used for its statutory reporting requirements in India immediately before adopting Ind ASs. For instance, companies required to prepare their financial statements in accordance with Section 133 of the Companies Act, 2013, shall consider those financial statements as previous GAAP financial statements.