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Exposure Draft of the Indian Accounting Standard (Ind AS) 101, First-Time Adoption of Indian Accounting Standards (Comments to be received by November 17, 2014)
October, 28th 2014
                 Exposure Draft


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



   (Last date for Comments: November 17, 2014)




                     Issued by
           Accounting Standards Board
  The Institute of Chartered Accountants of India




                         1
      Indian Accounting Standard (Ind AS) 101
 First-time Adoption of Indian Accounting Standards
Following is the Exposure Draft of revised Indian Accounting Standard (Ind AS)
101, First-time Adoption of Indian Accounting Standards issued by the Accounting
Standards Board of The Institute of Chartered Accountants of India, for comments.
This Ind AS would replace the existing Ind AS 101, First-time Adoption of Indian
Accounting Standards. The Board invites comments on any specific aspect of the
Exposure Draft. Comments are most helpful if they indicate the specific paragraph
or group of paragraphs to which they relate, contain a clear rationale and, where
applicable, provide a suggestion for alternative wording.





How to comment
Comments should be submitted using one of the following methods:

   1. Electronically:        Visit at the following link
                             http://www.icai.org/comments/asb/

   2. Email:                  comments can be sent to: commentsasb@icai.in

   3. Postal:                  Secretary, Accounting Standards Board,
                               The Institute of Chartered Accountants of India,
                               ICAI Bhawan, Post Box No. 7100,
                              Indraprastha Marg, New Delhi 110 002

Further clarifications on this Exposure Draft may be sought by e-mail to
achin.poddar@icai.in




                                        2
Indian Accounting Standard (Ind AS) 101

First-time Adoption of Indian Accounting Standards


CONTENTS                                                           paragraph
OBJECTIVE                                                                1
SCOPE                                                                    2-5
RECOGNITION AND MEASUREMENT                                              6-19
Opening Ind AS Balance Sheet                                             6
Accounting policies                                                      7-12
Exceptions to the retrospective application of other Ind ASs             13-17
Estimates                                                                14-17
Exemptions from other Ind ASs                                            18-19
PRESENTATION AND DISCLOSURE                                              20-33
Comparative information                                                  21-22
Non-Ind AS comparative information and historical summaries              22
Explanation of transition to Ind ASs                                     23-33
Reconciliations                                                          24-28
Designation of financial assets or financial liabilities                 29-29A
Use of fair value as deemed cost                                         30
Use of deemed cost for investments in subsidiaries, joint ventures and
associates                                                               31
Use of deemed cost for oil and gas assets                                31A
Use of deemed cost for operations subject to rate regulation             31B
Use of deemed cost after severe hyperinflation                           31C
Interim financial reports                                                32-33
APPENDICES
A Defined terms
B Exceptions to the retrospective application of other Ind ASs
C Exemptions for business combinations
D Exemptions from other Ind ASs
E Short-term exemptions from Ind ASs
1 Comparison with IFRS 1, First-time Adoption of International Financial
Reporting Standards

                                            3
4
                                  Exposure Draft
                        Ind AS 101
    First-time Adoption of Indian Accounting Standards
(The Exposure Draft of the Indian Accounting Standard includes paragraphs set in
bold type and plain type, which have equal authority. Paragraphs in bold type
indicate the main principles. (This Exposure Draft of the Indian Accounting
Standard should be read in the context of its objective and the Preface to the
Statements of Accounting Standards1)


Objective
1        The objective of this Ind AS is 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 for users and comparable over all periods presented;
         (b)      provides a suitable starting point for accounting in accordance with
                  Ind ASs; and
         (c)      can be generated at a cost that does not exceed the benefits.

Scope
2        An entity shall apply this Ind AS in:
         (a)      its first Ind AS financial statements; and

         (b)      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.
3        An entity's first Ind AS financial statements are the first annual financial
         statements in which the entity adopts Ind ASs, in accordance with Ind ASs
         notified under the Companies Act, 2013 and makes an explicit and
         unreserved statement in those financial statements of compliance with Ind
         ASs.


4        [Refer to Appendix 1]
4A       [Refer to Appendix 1]
4B       [Refer to Appendix 1]
5        This Ind AS does not apply to changes in accounting policies made by an


1
  Attention is specifically drawn to paragraph 4.3 of the Preface, according to which accounting
standards are intended to apply only to items which are material




                                                  5
       entity that already applies Ind ASs. Such changes are the subject of:
       (a)    requirements on changes in accounting policies in Ind AS 8
              Accounting Policies, Changes in Accounting Estimates and Errors;
              and
       (b)     specific transitional requirements in other Ind ASs.


Recognition and measurement
Opening Ind AS Balance Sheet
6      An entity shall prepare and present an opening Ind AS Balance Sheet at the
       date of transition to Ind ASs. This is the starting point for its accounting in
       accordance with Ind ASs.



Accounting policies
7      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, except as
       specified in paragraphs 13­19 and Appendices B­D.
8      An entity shall not apply different versions of Ind ASs that were effective at
       earlier dates. An entity may apply a new Ind AS that is not yet mandatory if
       that Ind AS permits early application.


Example: Consistent application of latest version of Ind ASs

Background
The end of entity A's first Ind AS reporting period is 31 March 2017. Entity A
decides to present comparative information in those financial statements for one year
only (see paragraph 21). Therefore, its date of transition to Ind ASs is the beginning
of business on 1 April 2015 (or, equivalently, close of business on 31 March 2015).
Entity A presented financial statements in accordance with its previous GAAP
annually to 31 March each year up to, and including, 31 March 2016.
Application of requirements
Entity A is required to apply the Ind ASs effective for periods ending on 31 March
2017 in:
  a) preparing and presenting its opening Ind AS Balance Sheet at 1 April 2015;
and
  b) preparing and presenting its Balance Sheet for 31 March 2017 (including
comparative amounts for the year ended 31 March 2016), Statement of profit or loss,
Statement of changes in equity and Statement of cash flows for the year to 31 March
2017 (including comparative amounts for the year ended 31 March 2016) and
disclosures (including comparative information for the year ended 31 March 2016).


                                          6
If a new Ind AS is not yet mandatory but permits early application, entity A is
permitted, but not required, to apply that Ind AS in its first Ind AS financial
statements.


9     The provisions in other Ind ASs apply to changes in accounting policies
      made by an entity that already uses Ind ASs; they do not apply to a first-time
      adopter's transition to Ind ASs, except as specified in Appendices B­D.
10    Except as described in paragraphs 13­19 and Appendices B­D, an entity
      shall, in its opening Ind AS Balance Sheet:
      (a)    recognise all assets and liabilities whose recognition is required by
             Ind ASs;
      (b)    not recognise items as assets or liabilities if Ind ASs do not permit
             such recognition;
      (c)    reclassify items that it recognised in accordance with previous GAAP
             as one type of asset, liability or component of equity, but are a
             different type of asset, liability or component of equity in accordance
             with Ind ASs; and
      (d)    apply Ind ASs in measuring all recognised assets and liabilities.
11    The accounting policies that an entity uses in its opening Ind AS Balance
      Sheet may differ from those that it used for the same date using its previous
      GAAP. The resulting adjustments arise from events and transactions before
      the date of transition to Ind ASs. Therefore, an entity shall recognise those
      adjustments directly in retained earnings (or, if appropriate, another category
      of equity) at the date of transition to Ind ASs.
12    This Ind AS establishes two categories of exceptions to the principle that an
      entity's opening Ind AS Balance Sheet shall comply with each Ind AS:
      (a)   paragraphs 14­17 and Appendix B prohibit retrospective application of
            some aspects of other Ind ASs.
      (b)   Appendices C­D grant exemptions from some requirements of other
            Ind ASs.

Exceptions to the retrospective application of other Ind ASs


13    This Ind AS prohibits retrospective application of some aspects of other Ind
      ASs. These exceptions are set out in paragraphs 14­17 and Appendix B.

Estimates
14    An entity's 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


                                         7
      accordance with previous GAAP (after adjustments to reflect any
      difference in accounting policies), unless there is objective evidence that
      those estimates were in error.
15    An entity may receive information after the date of transition to Ind ASs
      about estimates that it had made under previous GAAP. In accordance with
      paragraph 14, an entity shall treat the receipt of that information in the same
      way as non-adjusting events after the reporting period in accordance with Ind
      AS 10 Events after the Reporting Period. For example, assume that an
      entity's date of transition to Ind ASs is 1 April 2015 and new information on
      15 July 2015 requires the revision of an estimate made in accordance with
      previous GAAP at 31 March 2015. The entity shall not reflect that new
      information in its opening Ind AS Balance Sheet (unless the estimates need
      adjustment for any differences in accounting policies or there is objective
      evidence that the estimates were in error). Instead, the entity shall reflect that
      new information in profit or loss (or, if appropriate, other comprehensive
      income) for the year ended 31 March 2016.
16    An entity may need to make estimates in accordance with Ind ASs at the date
      of transition to Ind ASs that were not required at that date under previous
      GAAP. To achieve consistency with Ind AS 10, those estimates in
      accordance with Ind ASs shall reflect conditions that existed at the date of
      transition to Ind ASs. In particular, estimates at the date of transition to Ind
      ASs of market prices, interest rates or foreign exchange rates shall reflect
      market conditions at that date.
17    Paragraphs 14­16 apply to the opening Ind AS Balance Sheet. They also
      apply to a comparative period presented in an entity's first Ind AS financial
      statements, in which case the references to the date of transition to Ind ASs
      are replaced by references to the end of that comparative period.

Exemptions from other Ind ASs
18    An entity may elect to use one or more of the exemptions contained in
      Appendices C-D. An entity shall not apply these exemptions by analogy to
      other items.
19    [Deleted]


Presentation and disclosure
20    This Ind AS does not provide exemptions from the presentation and
      disclosure requirements in other Ind ASs.

Comparative information
21    An entity's first Ind AS financial statements shall include at least three
      Balance Sheet, two Statements of profit or loss, two Statements of cash flows
      and two Statements of changes in equity and related notes, including



                                          8
      comparative information for all statements presented.
Non-IndAS comparative information and historical summaries
22    Some entities present historical summaries of selected data for periods before
      the first period for which they present full comparative information in
      accordance with Ind ASs. This Ind AS does not require such summaries to
      comply with the recognition and measurement requirements of Ind ASs.
      Furthermore, some entities present comparative information in accordance
      with previous GAAP as well as the comparative information required by Ind
      AS 1. In any financial statements containing historical summaries or
      comparative information in accordance with previous GAAP, an entity shall:
      (a)    label the previous GAAP information prominently as not being
             prepared in accordance with Ind ASs; and
      (b)    disclose the nature of the main adjustments that would make it
             comply with Ind ASs. An entity need not quantify those adjustments.
Explanation of transition to Ind ASs
23    An entity shall explain how the transition from previous GAAP to Ind
      ASs affected its reported Balance sheet, financial performance and cash
      flows.
23A   [Refer to Appendix 1]
23B   [Refer to Appendix 1]

Reconciliations
24    To comply with paragraph 23, an entity's first Ind AS financial statements
      shall include:
      (a)    reconciliations of its equity reported in accordance with previous
             GAAP to its equity in accordance with Ind ASs for both of the
             following dates:
             (i)     the date of transition to Ind ASs; and
             (ii)    the end of the latest period presented in the entity's most
                     recent annual financial statements in accordance with previous
                     GAAP.
      (b)    a reconciliation to its total comprehensive income in accordance with
             Ind ASs for the latest period in the entity's most recent annual
             financial statements. The starting point for that reconciliation shall be
             total comprehensive income in accordance with previous GAAP for
             the same period or, if an entity did not report such a total, profit or
             loss under previous GAAP.
      (c)    if the entity recognised or reversed any impairment losses for the first
             time in preparing its opening Ind AS Balance Sheet, the disclosures
             that Ind AS 36 Impairment of Assets would have required if the entity



                                         9
               had recognised those impairment losses or reversals in the period
               beginning with the date of transition to Ind ASs.
25     The reconciliations required by paragraph 24(a) and (b) shall give sufficient
       detail to enable users to understand the material adjustments to the Balance
       Sheet and Statement of profit and loss. If an entity presented a Statement of
       cash flows under its previous GAAP, it shall also explain the material
       adjustments to the Statement of cash flows.
26     If an entity becomes aware of errors made under previous GAAP, the
       reconciliations required by paragraph 24(a) and (b) shall distinguish the
       correction of those errors from changes in accounting policies.
27     Ind AS 8 does not apply to the changes in accounting policies an entity
       makes when it adopts Ind ASs or to changes in those policies until after it
       presents its first Ind AS financial statements. Therefore, Ind AS 8's
       requirements about changes in accounting policies do not apply in an entity's
       first Ind AS financial statements.
27A    If during the period covered by its first Ind AS financial statements an entity
       changes its accounting policies or its use of the exemptions contained in this
       Ind AS, it shall explain the changes between its first Ind AS interim financial
       report and its first Ind AS financial statements, in accordance with paragraph
       23, and it shall update the reconciliations required by paragraph 24(a) and
       (b).
27AA If an entity adopts the first time exemption option provided in accordance
     with paragraph D7AA, the fact and the accounting policy shall be disclosed
     by the entity until such time that those items of Property, plant and
     equipment, investment properties or intangible assets, as the case may be, are
     significantly depreciated, impaired or derecognised from the entity's Balance
     Sheet.
28     If an entity did not present financial statements for previous periods, its first
       Ind AS financial statements shall disclose that fact.

Designation of financial assets or financial liabilities
29     An entity is permitted to designate a previously recognised financial asset as
       a financial asset measured at fair value through profit or loss in accordance
       with paragraph D19A. The entity shall disclose the fair value of financial
       assets so designated at the date of designation and their classification and
       carrying amount in the previous financial statements.
29A    An entity is permitted to designate a previously recognised financial liability
       as a financial liability at fair value through profit or loss in accordance with
       paragraph D19. The entity shall disclose the fair value of financial liabilities
       so designated at the date of designation and their classification and carrying
       amount in the previous financial statements.



                                          10
Use of fair value as deemed cost
30     If an entity uses fair value in its opening Ind AS Balance Sheet as deemed cost
       for an item of property, plant and equipment, an investment property or an
       intangible asset (see paragraphs D5 and D7), the entity's first Ind AS
       financial statements shall disclose, for each line item in the opening Ind AS
       Balance Sheet:
       (a)     the aggregate of those fair values; and
       (b)     the aggregate adjustment to the carrying amounts reported under
               previous GAAP.
Use of deemed cost for investments in subsidiaries, joint ventures and associates


31     Similarly, if an entity uses a deemed cost in its opening Ind AS Balance
       Sheet for an investment in a subsidiary, joint venture or associate in its
       separate financial statements (see paragraph D15), the entity's first Ind AS
       separate financial statements shall disclose:
       (a)     the aggregate deemed cost of those investments for which deemed
               cost is their previous GAAP carrying amount;
       (b)     the aggregate deemed cost of those investments for which deemed
               cost is fair value; and
       (c)     the aggregate adjustment to the carrying amounts reported under
               previous GAAP.


Use of deemed cost for oil and gas assets
31A    If an entity uses the exemption in paragraph D8A(b) for oil and gas assets, it
       shall disclose that fact and the basis on which carrying amounts determined
       under previous GAAP were allocated.

Use of deemed cost for operations subject to rate regulation
31B    If an entity uses the exemption in paragraph D8B for operations subject to
       rate regulation, it shall disclose that fact and the basis on which carrying
       amounts were determined under previous GAAP.

Use of deemed cost after severe hyperinflation
31C    If an entity elects to measure assets and liabilities at fair value and to use that
       fair value as the deemed cost in its opening Ind AS Balance Sheet because of
       severe hyperinflation (see paragraphs D26­D30), 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


                                           11
             transactions and balances in the currency.
       (b)   exchangeability between the currency and a relatively stable foreign
             currency does not exist.
Interim financial reports
32     To comply with paragraph 23, if an entity presents an interim financial report
       in accordance with Ind AS 34 for part of the period covered by its first Ind
       AS financial statements, the entity shall satisfy the following requirements in
       addition to the requirements of Ind AS 34:
       (a)   Each such interim financial report shall, if the entity presented an
             interim financial report for the comparable interim period of the
             immediately preceding financial year, include:
             (i)    a reconciliation of its equity in accordance with previous GAAP
                    at the end of that comparable interim period to its equity under
                    Ind ASs at that date; and
             (ii)   a reconciliation to its total comprehensive income in accordance
                    with Ind ASs for that comparable interim period (current and
                    year to date). The starting point for that reconciliation shall be
                    total comprehensive income in accordance with previous GAAP
                    for that period or, if an entity did not report such a total, profit
                    or loss in accordance with previous GAAP.
       (b)   In addition to the reconciliations required by (a), an entity's first
             interim financial report in accordance with Ind AS 34 for part of the
             period covered by its first Ind AS financial statements shall include the
             reconciliations described in paragraph 24(a) and (b) (supplemented by
             the details required by paragraphs 25 and 26) or a cross-reference to
             another published document that includes these reconciliations.
       (c)   If an entity changes its accounting policies or its use of the exemptions
             contained in this Ind AS, it shall explain the changes in each such
             interim financial report in accordance with paragraph 23 and update
             the reconciliations required by (a) and (b).


33     Ind AS 34 requires minimum disclosures, which are based on the assumption
       that users of the interim financial report also have access to the most recent
       annual financial statements. However, Ind AS 34 also requires an entity to
       disclose `any events or transactions that are material to an understanding of
       the current interim period'. Therefore, if a first-time adopter did not, in its
       most recent annual financial statements in accordance with previous GAAP,
       disclose information material to an understanding of the current interim
       period, its interim financial report shall disclose that information or include a
       cross-reference to another published document that includes it.




                                          12
Appendix A
Defined terms
This appendix is an integral part of this Ind AS.

date of transition     The beginning of the earliest period for which an entity
to Ind ASs             presents full comparative information under Ind ASs 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.

fair value             Fair value is the price that would be received to sell
                       an asset or paid to transfer a liability in an orderly
                       transaction between market participants at the
                       measurement date. (See Ind AS 113.)

first Ind AS Financi The first annual financial statements in which an entity
Statements           adopts Ind ASs, by an explicit and unreserved
                     statement of compliance with Ind ASs.


first Ind AS reportin The latest reporting period covered by an entity's first
period                Ind AS financial statements

first-time adopter     An entity that presents its first Ind AS financial
                       statements.

Indian Accounting Ind ASs are Accounting Standards prescribed
Standards (Ind ASs) under Section 133 of the Companies Act, 2013.



opening Ind AS         An entity's Balance Sheet at the date of transition to Ind
Balance Sheet          ASs.

previous GAAP          The basis of accounting that a first-time adopter used for
                       its statutory reporting requirement in India immediately
                       before adopting Ind AS's. 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.




                                         13
Appendix B
Exceptions to the retrospective application of other Ind ASs

This appendix is an integral part of this Ind AS.
B1     An entity shall apply the following exceptions:

       (a)    derecognition of financial assets and financial liabilities (paragraphs
              B2 and B3);

       (b)    hedge accounting (paragraphs B4­B6);

       (c)    non-controlling interests (paragraph B7);

       (d)    classification and measurement of financial assets (paragraphs B8-
              B8C);

       (e)    impairment of financial assets (paragraphs B8D-B8G);

       (f)    embedded derivatives (paragraph B9); and

       (g)    government loans (paragraphs B10­B12).

Derecognition of financial assets and financial liabilities
B2     Except as permitted by paragraph B3, a first-time adopter shall apply the
       derecognition requirements in Ind AS109 prospectively for transactions
       occurring on or after the date of transition to Ind ASs. For example, if a first-
       time adopter derecognised non-derivative financial assets or non-derivative
       financial liabilities in accordance with its previous GAAP as a result of a
       transaction that occurred before the date of transition to Ind ASs, it shall not
       recognise those assets and liabilities in accordance with Ind ASs (unless they
       qualify for recognition as a result of a later transaction or event).
B3     Despite paragraph B2, an entity may apply the derecognition requirements in
       Ind AS 109 retrospectively from a date of the entity's choosing, provided that
       the information needed to apply Ind AS 109 to financial assets and financial
       liabilities derecognised as a result of past transactions was obtained at the
       time of initially accounting for those transactions.
Hedge accounting
B4     As required by Ind AS 109, at the date of transition to Ind ASs an entity
       shall:

       (a)    measure all derivatives at fair value; and

       (b)    eliminate all deferred losses and gains arising on derivatives that were
              reported in accordance with previous GAAP as if they were assets or
              liabilities.
B5     An entity shall not reflect in its opening Ind AS Balance Sheet a hedging


                                          14
       relationship of a type that does not qualify for hedge accounting in
       accordance with Ind AS 109 (for example, many hedging relationships where
       the hedging instrument is a stand-alone written option or a net written option;
       or where the hedged item is a net position in a cash flow hedge for another
       risk than foreign currency risk). However, if an entity designated a net
       position as a hedged item in accordance with previous GAAP, it may
       designate as a hedged item in accordance with Ind ASs an individual item
       within that net position, or a net position if that meets the requirements in
       paragraph 6.6.1 of Ind AS 109, provided that it does so no later than the date
       of transition to Ind ASs.
B6     If, before the date of transition to Ind ASs, an entity had designated a
       transaction as a hedge but the hedge does not meet the conditions for hedge
       accounting in Ind AS 109, the entity shall apply paragraphs 6.5.6 and 6.5.7 of
       Ind AS 109 to discontinue hedge accounting. Transactions entered into
       before the date of transition to Ind ASs shall not be retrospectively
       designated as hedges.
Non-controlling interests
B7     A first-time adopter shall apply the following requirements of Ind AS 110
       prospectively from the date of transition to Ind ASs:
       (a)    the requirement in paragraph B94 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;
       (b)    the requirements in paragraphs 23 and B96 for accounting for
              changes in the parent's ownership interest in a subsidiary that do not
              result in a loss of control; and
       (c)    the requirements in paragraphs B97­B99 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 shall also apply Ind AS 110 in accordance with
       paragraph C1 of this Ind AS.

Classification and measurement of financial assets
B8     An entity shall assess whether a financial asset meets the conditions in
       paragraph 4.1.2 or the conditions in paragraph 4.1.2A of Ind AS 109 on the
       basis of the facts and circumstances that exist at the date of transition to Ind
       ASs.
B8A    If it is impracticable to assess a modified time value of money element in
       accordance with paragraphs B4.1.9B­B4.1.9D of Ind AS 109 on the basis of
       the facts and circumstances that exist at the date of transition to Ind ASs, an


                                         15
      entity shall assess the contractual cash flow characteristics of that financial
      asset on the basis of the facts and circumstances that existed at the date of
      transition to Ind ASs without taking into account the requirements related to
      the modification of the time value of money element in paragraphs B4.1.9B­
      B4.1.9D of Ind AS 109. An entity shall disclose the carrying amount at the
      reporting date of the financial assets whose contractual cash flow
      characteristics have been assessed based on the facts and circumstances that
      existed at the date of transition to Ind ASs without taking into account the
      requirements related to the modification of the time value of money element
      in paragraphs B4.1.9B­B4.1.9D of Ind AS 109 until those financial assets are
      derecognized.


B8B   If it is impracticable to assess whether the fair value of a prepayment feature
      is insignificant in accordance with paragraph B4.1.12(c) of Ind AS 109 on
      the basis of the facts and circumstances that exist at the date of transition to
      Ind-ASs, an entity shall assess the contractual cash flow characteristics of
      that financial asset on the basis of the facts and circumstances that existed at
      the date of transition to Ind-ASs without taking into account the exception for
      prepayment features in paragraph B4.1.12 of Ind AS 109. An entity shall
      disclose the carrying amount at the reporting date of the financial assets
      whose contractual cash flow characteristics have been assessed based on the
      facts and circumstances that existed at the date of transition to Ind ASs
      without taking into account the exception for prepayment features in
      paragraph B4.1.12 of Ind AS 109 until those financial assets are
      derecognised.


B8C   If it is impracticable (as defined in Ind AS 8) for an entity to apply
      retrospectively the effective interest method in Ind AS 109, the fair value of
      the financial asset or the financial liability at the date of transition to Ind ASs
      shall be the new gross carrying amount of that financial asset or the new
      amortised cost of that financial liability at the date of transition to Ind ASs.


Impairment of financial assets
B8D   An entity shall apply the impairment requirements in Section 5.5 of Ind AS
      109 retrospectively subject to paragraphs B8E, B8F and B8G of this Ind AS.


B8E   At the date of transition to Ind ASs, an entity shall use reasonable and
      supportable information that is available without undue cost or effort to
      determine the credit risk at the date that financial instruments were initially
      recognised (or for loan commitments and financial guarantee contracts the
      date that the entity became a party to the irrevocable commitment in
      accordance with paragraph 5.5.6 of Ind AS 109) and compare that to the


                                          16
       credit risk at the date of transition to Ind ASs (also see paragraphs B8EA­
       B8EB of this Ind AS.


B8EA An entity should seek to approximate the credit risk on initial recognition by
     considering all reasonable and supportable information that is available
     without undue cost or effort. An entity is not required to undertake an
     exhaustive search for information when determining, at the date of transition
     to Ind ASs, whether there have been significant increases in credit risk since
     initial recognition. If an entity is unable to make this determination without
     undue cost or effort paragraph B8G of this Ind AS applies.


B8EB In order to determine the loss allowance on financial instruments initially
     recognised (or loan commitments or financial guarantee contracts to which
     the entity became a party to the contract) prior to the date of initial
     application, both on transition and until the derecognition of those items, an
     entity shall consider information that is relevant in determining or
     approximating the credit risk at initial recognition. In order to determine or
     approximate the initial credit risk, an entity may consider internal and
     external information, including portfolio information, in accordance with
     paragraphs B5.5.1­B5.5.6 of Ind AS 109.


B8F    When determining whether there has been a significant increase in credit risk
       since initial recognition, an entity may apply:
       (a)   the requirements in paragraph 5.5.10 and B5.5.22­B5.5.24 of Ind AS
             109; and
       (b)   the rebuttable presumption in paragraph 5.5.11 of Ind AS 109 for
             contractual payments that are more than 30 days past due if an entity
             will apply the impairment requirements by identifying significant
             increases in credit risk since initial recognition for those financial
             instruments on the basis of past due information.


B8G    If, at the date of transition to Ind ASs, determining whether there has been a
       significant increase in credit risk since the initial recognition of a financial
       instrument would require undue cost or effort, an entity shall recognise a loss
       allowance at an amount equal to lifetime expected credit losses at each
       reporting date until that financial instrument is derecognised (unless that
       financial instrument is low credit risk at a reporting date, in which case
       paragraph B8F(a) applies).



Embedded derivatives
B9     A first-time adopter shall assess whether an embedded derivative is required


                                         17
      to be separated from the host contract and accounted for as a derivative on
      the basis of the conditions that existed at the later of the date it first became a
      party to the contract and the date a reassessment is required by paragraph
      B4.3.11 of Ind AS 109.

Government loans
B10   A first-time adopter shall classify all government loans received as a
      financial liability or an equity instrument in accordance with Ind AS 32
      Financial Instruments: Presentation. Except as permitted by paragraph B11,
      a first-time adopter shall apply the requirements in Ind AS 109 Financial
      Instruments and Ind AS 20 Accounting for Government Grants and
      Disclosure of Government Assistance prospectively to government loans
      existing at the date of transition to Ind ASs and shall not recognise the
      corresponding benefit of the government loan at a below-market rate of
      interest as a government grant. Consequently, if a first-time adopter did not,
      under its previous GAAP, recognise and measure a government loan at a
      below-market rate of interest on a basis consistent with Ind AS requirements,
      it shall use its previous GAAP carrying amount of the loan at the date of
      transition to Ind ASs as the carrying amount of the loan in the opening Ind
      AS Balance Sheet. An entity shall apply Ind AS 109 to the measurement of
      such loans after the date of transition to Ind ASs.
B11   Despite paragraph B10, an entity may apply the requirements in Ind AS 109
      and Ind AS 20 retrospectively to any government loan originated before the
      date of transition to Ind ASs, provided that the information needed to do so
      had been obtained at the time of initially accounting for that loan.
B12   The requirements and guidance in paragraphs B10 and B11 do not preclude
      an entity from being able to use the exemptions described in paragraphs
      D19­D19C relating to the designation of previously recognised financial
      instruments at fair value through profit or loss.




                                          18
Appendix C
Exemptions for business combinations

This appendix is an integral part of this Ind AS. An entity shall apply the following
requirements to business combinations that the entity recognised before the date of
transition to Ind ASs. This Appendix should only be applied to business
combinations within the scope of Ind AS 103 Business Combinations.
C1     A first-time adopter may elect not to apply Ind AS 103 retrospectively to past
       business combinations (business combinations that occurred before the date
       of transition to Ind ASs). However, if a first-time adopter restates any
       business combination to comply with Ind AS 103, it shall restate all later
       business combinations and shall also apply Ind AS 110 from that same date.
       For example, if a first-time adopter elects to restate a business combination
       that occurred on 30 June 2010, it shall restate all business combinations that
       occurred between 30 June 2010 and the date of transition to Ind ASs, and it
       shall also apply Ind AS 110 from 30 June 2010.
C2     An entity need not apply Ind AS 21 The Effects of Changes in Foreign
       Exchange Rates retrospectively to fair value adjustments and goodwill
       arising in business combinations that occurred before the date of transition to
       Ind ASs. If the entity does not apply Ind AS 21 retrospectively to those fair
       value adjustments and goodwill, it shall treat them as assets and liabilities of
       the entity rather than as assets and liabilities of the acquiree. Therefore, those
       goodwill and fair value adjustments either are already expressed in the
       entity's functional currency or are non-monetary foreign currency items,
       which are reported using the exchange rate applied in accordance with
       previous GAAP.
C3     An entity may apply Ind AS 21 retrospectively to fair value adjustments and
       goodwill arising in either:
       (a)    all business combinations that occurred before the date of transition to
              Ind ASs; or
       (b)    all business combinations that the entity elects to restate to comply
              with Ind AS 103, as permitted by paragraph C1 above.
C4     If a first-time adopter does not apply Ind AS 103 retrospectively to a past
       business combination, this has the following consequences for that business
       combination:
       (a)    The first-time adopter shall keep the same classification (as an
              acquisition by the legal acquirer, a reverse acquisition by the legal
              acquiree, or a uniting of interests) as in its previous GAAP financial
              statements.
       (b)    The first-time adopter shall recognise all its assets and liabilities at


                                          19
                the date of transition to Ind ASs that were acquired or assumed in a
                past business combination, other than:
                (i)   some financial assets and financial liabilities derecognised in
                      accordance with previous GAAP (see paragraph B2); and
                (ii) assets, including goodwill, and liabilities that were not
                     recognised in the acquirer's consolidated Balance Sheet in
                     accordance with previous GAAP and also would not qualify for
                     recognition in accordance with Ind ASs in the separate Balance
                     Sheet of the acquiree (see (f)­(i) below).
                The first-time adopter shall recognise any resulting change by
                adjusting retained earnings (or, if appropriate, another category of
                equity), unless the change results from the recognition of an
                intangible asset that was previously subsumed within goodwill (see
                (g)(i) below).
        (c)     The first-time adopter shall exclude from its opening Ind AS Balance
                Sheet any item recognised in accordance with previous GAAP that
                does not qualify for recognition as an asset or liability under Ind ASs.
                The first-time adopter shall account for the resulting change as
                follows:
                (i)   the first-time adopter may have classified a past business
                      combination as an acquisition and recognised as an intangible
                      asset an item that does not qualify for recognition as an asset in
                      accordance with Ind AS 38 Intangible Assets. It shall reclassify
                      that item (and, if any, the related deferred tax and non-
                      controlling interests) as part of goodwill (unless it deducted
                      goodwill directly from equity in accordance with previous
                      GAAP, see (g)(i) and (i) below) or capital reserve to the extent
                      not exceeding the balance available in that reserve.
                (ii) the first-time adopter shall recognise all other resulting changes
                     in retained earnings.2
        (d)     Ind ASs require subsequent measurement of some assets and
                liabilities on a basis that is not based on original cost, such as fair
                value. The first-time adopter shall measure these assets and liabilities
                on that basis in its opening Ind AS Balance Sheet, even if they were
                acquired or assumed in a past business combination. It shall recognise

2
   Such changes include reclassifications from or to intangible assets if goodwill was not
recognised in accordance with previous GAAP as an asset. This arises if, in accordance with
previous GAAP, the entity (a) deducted goodwill directly from equity or (b) did not treat the
business combination as an acquisition or (c) recognised capital reserve in a business
combination accounted for as an acquisition and the amount of reclassification mentioned in
(i) above exceeds the balance available in that reserve.




                                             20
      any resulting change in the carrying amount by adjusting retained
      earnings (or, if appropriate, another category of equity), rather than
      goodwill/capital reserve.
(e)   Immediately after the business combination, the carrying amount in
      accordance with previous GAAP of assets acquired and liabilities
      assumed in that business combination shall be their deemed cost in
      accordance with Ind ASs at that date. If Ind ASs require a cost-based
      measurement of those assets and liabilities at a later date that deemed
      cost shall be the basis for cost-based depreciation or amortisation
      from the date of the business combination.
(f)   If an asset acquired, or liability assumed, in a past business
      combination was not recognised in accordance with previous GAAP,
      it does not have a deemed cost of zero in the opening Ind AS Balance
      Sheet. Instead, the acquirer shall recognise and measure it in its
      consolidated Balance Sheet on the basis that Ind ASs would require in
      the Balance Sheet of the acquiree. To illustrate: if the acquirer had
      not, in accordance with its previous GAAP, capitalised finance leases
      acquired in a past business combination, it shall capitalise those
      leases in its consolidated financial statements, as Ind AS 17 Leases
      would require the acquiree to do in its Ind AS Balance Sheet.
      Similarly, if the acquirer had not, in accordance with its previous
      GAAP, recognised a contingent liability that still exists at the date of
      transition to Ind ASs, the acquirer shall recognise that contingent
      liability at that date unless Ind AS 37 Provisions, Contingent
      Liabilities and Contingent Assets would prohibit its recognition in the
      financial statements of the acquiree. Conversely, if an asset or
      liability was subsumed in goodwill/capital reserve in accordance with
      previous GAAP but would have been recognised separately under Ind
      AS 103, that asset or liability remains in goodwill/capital reserve
      unless Ind ASs would require its recognition in the financial
      statements of the acquiree.
(g)   (g)     The carrying amount of goodwill or capital reserve in the
      opening Ind AS Balance Sheet shall be its carrying amount in
      accordance with previous GAAP at the date of transition to Ind ASs,
      after the following two adjustments:
      (i)   If required by (c)(i) above, the first-time adopter shall increase
            the carrying amount of goodwill or decrease the carrying
            amount of capital reserve when it reclassifies an item that it
            recognised as an intangible asset in accordance with previous
            GAAP. Similarly, if (f) above requires the first-time adopter to
            recognise an intangible asset that was subsumed in recognised
            goodwill or capital reserve in accordance with previous GAAP,
            the first-time adopter shall decrease the carrying amount of


                                 21
            goodwill or increase the carrying amount of capital reserve
            accordingly (and, if applicable, adjust deferred tax and non-
            controlling interests).
      (ii) Regardless of whether there is any indication that the goodwill
           may be impaired, the first-time adopter shall apply Ind AS 36 in
           testing the goodwill for impairment at the date of transition to
           Ind ASs and in recognising any resulting impairment loss in
           retained earnings (or, if so required by Ind AS 36, in revaluation
           surplus). The impairment test shall be based on conditions at the
           date of transition to Ind ASs.
(h)   No other adjustments shall be made to the carrying amount of
      goodwill / capital reserve at the date of transition to Ind ASs. For
      example, the first-time adopter shall not restate the carrying amount
      of goodwill / capital reserve:
      (i)   to exclude in-process research and development acquired in that
            business combination (unless the related intangible asset would
            qualify for recognition in accordance with Ind AS 38 in the
            Balance Sheet of the acquiree);
      (ii) to adjust previous amortisation of goodwill;
      (iii) to reverse adjustments to goodwill that Ind AS 103 would not
            permit, but were made in accordance with previous GAAP
            because of adjustments to assets and liabilities between the date
            of the business combination and the date of transition to Ind
            ASs.
(i)   If the first-time adopter recognised goodwill in accordance with
      previous GAAP as a deduction from equity:
      (i)   it shall not recognise that goodwill in its opening Ind AS
            Balance Sheet. Furthermore, it shall not reclassify that goodwill
            to profit or loss if it disposes of the subsidiary or if the
            investment in the subsidiary becomes impaired.
      (ii) adjustments resulting from the subsequent resolution of a
           contingency affecting the purchase consideration shall be
           recognised in retained earnings.
(j)   In accordance with its previous GAAP, the first-time adopter may not
      have consolidated a subsidiary acquired in a past business
      combination (for example, because the parent did not regard it as a
      subsidiary in accordance with previous GAAP or did not prepare
      consolidated financial statements). The first-time adopter shall adjust
      the carrying amounts of the subsidiary's assets and liabilities to the
      amounts that Ind ASs would require in the subsidiary's Balance
      Sheet. The deemed cost of goodwill equals the difference at the date
      of transition to Ind ASs between:

                                22
            (i)   the parent's interest in those adjusted carrying amounts; and
            (ii) the cost in the parent's separate financial statements of its
                 investment in the subsidiary.
     (k)    The measurement of non-controlling interests and deferred tax
            follows from the measurement of other assets and liabilities.
            Therefore, the above adjustments to recognised assets and liabilities
            affect non-controlling interests and deferred tax.
C5   The exemption for past business combinations also applies to past
     acquisitionsof investments in associates and of interests in joint ventures.
     Furthermore, the date selected for paragraph C1 applies equally for all such
     acquisitions.







                                       23
Appendix D
Exemptions from other Ind ASs

This appendix is an integral part of thisInd AS.
D1     An entity may elect to use one or more of the following exemptions:
       (a)     share-based payment transactions (paragraphs D2 and D3);
       (b)     insurance contracts (paragraph D4);
       (c)     deemed cost (paragraphs D5­D8B);
       (d)     leases (paragraphs D9 and D9AA);
       (e)     [deleted]
       (f)     cumulative translation differences (paragraphs D12 and D13);
       (g)     investments in subsidiaries, joint ventures and associates (paragraphs
               D14 and D15);
       (h)     assets and liabilities of subsidiaries, associates and joint ventures
               (paragraphs D16 and D17);
       (i)     compound financial instruments (paragraph D18);
       (j)     designation of previously           recognised   financial   instruments
               (paragraphs D19­D19C);
       (k)     fair value measurement of financial assets or financial liabilities at
               initial recognition (paragraph D20);
       (l)     decommissioning liabilities included in the cost of property, plant and
               equipment (paragraphs D21 and D21A);
       (m)     financial assets or intangible assets accounted for in accordance with
               Appendix      A      to   Ind     AS     115    Service    Concession
               Arrangements(paragraph D22);
       (n)     borrowing costs (paragraph D23);
       (o)     [deleted];
       (p)     extinguishing financial liabilities with equity instruments (paragraph
               D25);
       (q)     severe hyperinflation (paragraphs D26­D30);
       (r)     joint arrangements (paragraph D31-D31AL);
       (s)     stripping costs in the production phase of a surface mine (paragraph
               D32);
       (t)     designation of contracts to buy or sell a non-financial item (paragraph
               D33);
       (u)       revenue from contracts with customers (paragraph D34 - D35); and



                                          24
      (v)    non-current assets held for sale and discontinued operations
             (paragraph D35AA).
      (w)    non-current assets held for sale and discontinued operations
             (paragraph D35AB).
      An entity shall not apply these exemptions by analogy to other items.
Share-based payment transactions
D2    A first-time adopter is encouraged, but not required, to apply Ind AS 102
      Share-based payment to equity instruments that vested before date of
      transition to Ind ASs. However, if a first-time adopter elects to apply Ind AS
      102 to such equity instruments, it may do so only if the entity has disclosed
      publicly the fair value of those equity instruments, determined at the
      measurement date, as defined in Ind AS 102. For all grants of equity
      instruments to which Ind AS 102 has not been applied (eg, equity
      instruments vested but not settled before date of transition to Ind ASs, a first-
      time adopter shall nevertheless disclose the information required by
      paragraphs 44 and 45 of Ind AS 102. If a first-time adopter modifies the
      terms or conditions of a grant of equity instruments to which Ind AS 102 has
      not been applied, the entity is not required to apply paragraphs 26­29 of Ind
      AS 102 if the modification occurred before the date of transition to Ind ASs.
D3    A first-time adopter is encouraged, but not required, to apply Ind AS 102 to
      liabilities arising from share-based payment transactions that were settled
      before the date of transition to Ind ASs.

Insurance contracts
D4    An entity shall apply Ind AS 104 Insurance Contracts for annual periods
      beginning on or after date of transition to Ind ASs. Earlier application is
      encouraged. If an entity applies this Ind AS 104 for an earlier period, it shall
      disclose that fact.
      In applying paragraph 39(c)(iii), of Ind AS 104 an entity need not disclose
      information about claims development that occurred earlier than five years
      before the end of the first financial year in which it applies Ind AS 104.
      Furthermore, if it is impracticable, when an entity first applies Ind AS 104, to
      prepare information about claims development that occurred before the
      beginning of the earliest period for which an entity presents full comparative
      information that complies with this Ind AS, the entity shall disclose that fact.
      When an insurer changes its accounting policies for insurance liabilities, it is
      permitted, but not required, to reclassify some or all of its financial assets as
      `at fair value through profit or loss'. This reclassification is permitted if an
      insurer changes accounting policies when it first applies Ind AS 104 and if it
      makes a subsequent policy change permitted by paragraph 22. The
      reclassification is a change in accounting policy and Ind AS 8 applies.




                                         25
Deemed cost
D5     An entity may elect to measure an item of property, plant and equipment at
       the date of transition to Ind ASs at its fair value and use that fair value as its
       deemed cost at that date.


D6     A first-time adopter may elect to use a previous GAAP revaluation of an item
       of property, plant and equipment at, or before, the date of transition to Ind
       ASs as deemed cost at the date of the revaluation, if the revaluation was, at
       the date of the revaluation, broadly comparable to:
       (a)    fair value; or
       (b)   cost or depreciated cost in accordance with Ind ASs, adjusted to
             reflect, for example, changes in a general or specific price index.


D7     The elections in paragraphs D5 and D6 are also available for:
       (a)    investment property, accounted for in accordance with the cost model
              in Ind AS 40 Investment Property; and
       (b)    intangible assets that meet:
              (i)     the recognition criteria in Ind AS 38 (including reliable
                      measurement of original cost); and
              (ii)    the criteria in Ind AS 38 for revaluation (including the
                      existence of an active market).
       An entity shall not use these elections for other assets or for liabilities.


D7AA Where there is no change in its functional currency on the date of transition
     to Ind ASs, a first-time adopter to Ind ASs may elect to continue with the
     carrying value for all of its property, plant and equipment as recognised in
     the financial statements as at the date of transition to Ind ASs, measured as
     per the previous GAAP and use that as its deemed cost as at the date of
     transition after making necessary adjustments in accordance with paragraph
     D21 and D21A, of this Ind AS. For this purpose, if the financial statements
     are consolidated financial statements, the previous GAAP amount of the
     subsidiary shall be that amount used in preparing and presenting consolidated
     financial statements. Where a subsidiary was not consolidated under previous
     GAAP, the amount required to be reported by the subsidiary as per previous
     GAAP in its individual financial statements shall be the previous GAAP
     amount. If an entity avails the option under this paragraph, no further
     adjustments to the deemed cost of the property, plant and equipment so
     determined in the opening balance sheet shall be made for transition
     adjustments that might arise from the application of other Ind ASs. This
     option can also be availed for intangible assets covered by Ind AS 38,
     Intangible Assets and investment property covered by Ind AS 40, Investment
     Property."



                                          26
D8    A first-time adopter may have established a deemed cost in accordance with
      previous GAAP for some or all of its assets and liabilities by measuring them
      at their fair value at one particular date because of an event such as a
      privatization or initial public offering.
      (a)   If the measurement date is at or before the date of transition to Ind
            ASs, the entity may use such event-driven fair value measurements as
            deemed cost for Ind ASs at the date of that measurement.
      (b)   If the measurement date is after the date of transition to Ind ASs, but
            during the period covered by the first Ind AS financial statements, the
            event-driven fair value measurements may be used as deemed cost
            when the event occurs. An entity shall recognise the resulting
            adjustments directly in retained earnings (or if appropriate, another
            category of equity) at the measurement date. At the date of transition
            to Ind ASs, the entity shall either establish the deemed cost by
            applying the criteria in paragraphs D5­D7 or measure assets and
            liabilities in accordance with the other requirements in this Ind AS.
D8A   Under some GAAP's exploration and development costs for oil and gas
      properties in the development or production phases are accounted for in cost
      centers that include all properties in a large geographical area. A first-time
      adopter using such accounting under previous GAAP may elect to measure
      oil and gas assets at the date of transition to Ind ASs on the following basis:
      (a)    exploration and evaluation assets at the amount determined under the
             entity's previous GAAP; and
      (b)    assets in the development or production phases at the amount
             determined for the cost centre under the entity's previous GAAP. The
             entity shall allocate this amount to the cost centre's underlying assets
             pro rata using reserve volumes or reserve values as of that date.


      The entity shall test exploration and evaluation assets and assets in the
      development and production phases for impairment at the date of transition
      to Ind ASs in accordance with IndAS106 Exploration for and Evaluation of
      Mineral Resources or Ind AS 36 respectively and, if necessary, reduce the
      amount determined in accordance with (a) or (b) above. For the purposes of
      this paragraph, oil and gas assets comprise only those assets used in the
      exploration, evaluation, development or production of oil and gas.


D8B   Some entities hold items of property, plant and equipment or intangible
      assets that are used, or were previously used, in operations subject to rate
      regulation. The carrying amount of such items might include amounts that
      were determined under previous GAAP but do not qualify for capitalisation
      in accordance with Ind ASs. If this is the case, a first-time adopter may elect



                                        27
         to use the previous GAAP carrying amount of such an item at the date of
         transition to Ind ASs as deemed cost. If an entity applies this exemption to an
         item, it need not apply it to all items. At the date of transition to Ind ASs, an
         entity shall test for impairment in accordance with Ind AS 36 each item for
         which this exemption is used. For the purposes of this paragraph, operations
         are subject to rate regulation if they are governed by a framework for
         establishing the prices that can be charged to customers for goods or services
         and that framework is subject to oversight and/or approval by a rate regulator
         (as defined in Ind AS 14 Regulatory Deferral Accounts).


Leases
D9       A first-time adopter may apply paragraphs 6-9 of the Appendix C of Ind AS
         17 Determining whether an Arrangement contains a Lease to determine
         whether an arrangement existing at the date of transition to Ind ASs contains
         a lease on the basis of facts and circumstances existing at the date of
         transition to Ind AS, except where the effect is expected to be not material.
D9A      If a first-time adopter made the same determination of whether an
         arrangement contained a lease in accordance with previous GAAP as that
         required by Appendix C of Ind AS-17 but at a date other than that required
         by D9 above, the first-time adopter need not reassess that determination
         when it adopts Ind ASs. For an entity to have made the same determination
         of whether the arrangement contained a lease in accordance with previous
         GAAP, that determination would have to have given the same outcome as
         that resulting from applying Ind AS 17 Leases and Appendix C of Ind AS 17.


D9AA When a lease includes both land and building elements, a first time adopter
     may assess the classification of each element as finance or an operating lease
     at the date of transition to Ind ASs on the basis of the facts and circumstances
     existing as at that date. If there is any land lease newly classified as finance
     lease then the first time adopter may recognise assets and liability at fair
     value on that date; and any difference between those fair values is recognised
     in retained earnings.


D10      [Deleted]


D11­ [Deleted]


Cumulative translation differences
D12      Ind AS 21 requires an entity:
         (a)     to recognise some translation differences in other comprehensive


                                            28
               income and accumulate these in a separate component of equity; and
       (b)     on disposal of a foreign operation, to reclassify the cumulative
               translation difference for that foreign operation (including, if
               applicable, gains and losses on related hedges) from equity to profit
               or loss as part of the gain or loss on disposal.
D13    However, a first-time adopter need not comply with these requirements for
       cumulative translation differences that existed at the date of transition to Ind
       ASs. If a first-time adopter uses this exemption:
       (a)     the cumulative translation differences for all foreign operations are
               deemed to be zero at the date of transition to Ind ASs; and
       (b)     the gain or loss on a subsequent disposal of any foreign operation
               shall exclude translation differences that arose before the date of
               transition to Ind ASs and shall include later translation differences.
Investments in subsidiaries, joint ventures and associates
D14    When an entity prepares separate financial statements, Ind AS 27 requires it
       to account for its investments in subsidiaries, joint ventures and associates
       either:
       (a)     at cost; or
       (b)     in accordance with Ind AS 109.
D15    If a first-time adopter measures such an investment at cost in accordance with
       Ind AS 27, it shall measure that investment at one of the following amounts
       in its separate opening Ind AS Balance Sheet:
       (a)     cost determined in accordance with Ind AS 27; or
       (b)     deemed cost. The deemed cost of such an investment shall be its:

              (i)     fair value at the entity's date of transition to Ind ASs in its
                      separate financial statements; or
              (ii)    previous GAAP carrying amount at that date.
              A first-time adopter may choose either (i) or (ii) above to measure its
              investment in each subsidiary, joint venture or associate that it elects
              to measure using a deemed cost.


Assets and liabilities of subsidiaries, associates and joint ventures
D16    If a subsidiary becomes a first-time adopter later than its parent, the
       subsidiary shall, in its financial statements, measure its assets and liabilities
       at either:
       (a)     the carrying amounts that would be included in the parent's
               consolidated financial statements, based on the parent's date of
               transition to Ind ASs, if no adjustments were made for consolidation
               procedures and for the effects of the business combination in which



                                          29
              the parent acquired the subsidiary (this election is not available to a
              subsidiary of an investment entity, as defined in Ind AS 110, that is
              required to be measured at fair value through profit or loss); or

      (b)     the carrying amounts required by the rest of this Ind AS, based on the
              subsidiary's date of transition to Ind ASs. These carrying amounts
              could differ from those described in (a):
              (i)    when the exemptions in this Ind AS result in measurements
                     that depend on the date of transition to Ind ASs.
              (ii) when the accounting policies used in the subsidiary's financial
                     statements differ from those in the consolidated financial
                     statements. For example, the subsidiary may use as its
                     accounting policy the cost model in Ind AS 16 Property, Plant
                     and Equipment, whereas the group may use the revaluation
                     model.
              A similar election is available to an associate or joint venture that
              becomes a first-time adopter later than an entity that has significant
              influence or joint control over it.
D17   However, if an entity becomes a first-time adopter later than its subsidiary
      (or associate or joint venture) the entity shall, in its consolidated financial
      statements, measure the assets and liabilities of the subsidiary (or associate or
      joint venture) at the same carrying amounts as in the financial statements of
      the subsidiary (or associate or joint venture), after adjusting for consolidation
      and equity accounting adjustments and for the effects of the business
      combination in which the entity acquired the subsidiary. Notwithstanding this
      requirement, a non-investment entity parent shall not apply the exception to
      consolidation that is used by any investment entity subsidiaries. Similarly, if
      a parent becomes a first-time adopter for its separate financial statements
      earlier or later than for its consolidated financial statements, it shall measure
      its assets and liabilities at the same amounts in both financial statements,
      except for consolidation adjustments.
Compound financial instruments
D18   Ind AS 32 Financial Instruments: Presentation requires an entity to split a
      compound financial instrument at inception into separate liability and equity
      components. If the liability component is no longer outstanding, retrospective
      application of Ind AS 32 involves separating two portions of equity. The first
      portion is in retained earnings and represents the cumulative interest accreted
      on the liability component. The other portion represents the original equity
      component. However, in accordance with this Ind AS, a first-time adopter
      need not separate these two portions if the liability component is no longer
      outstanding at the date of transition to Ind ASs.
Designation of previously recognised financial instruments
D19   Ind AS 109 permits a financial liability (provided it meets certain criteria) to



                                         30
       be designated as a financial liability at fair value through profit or loss.
       Despite this requirement an entity is permitted to designate, at the date of
       transition to Ind ASs, any financial liability as at fair value through profit or
       loss provided the liability meets the criteria in paragraph 4.2.2 of Ind AS 109
       at that date.
D19A An entity may designate a financial asset as measured at fair value through
     profit or loss in accordance with paragraph 4.1.5 of Ind AS 109 on the basis
     of the facts and circumstances that exist at the date of transition to Ind ASs.
D19B An entity may designate an investment in an equity instrument as at fair
     value through other comprehensive income in accordance with paragraph
     5.7.5 of Ind AS 109 on the basis of the facts and circumstances that exist at
     the date of transition to Ind ASs.
D19C For a financial liability that is designated as a financial liability at fair value
     through profit or loss, an entity shall determine whether the treatment in
     paragraph 5.7.7 of Ind AS 109 would create an accounting mismatch in profit
     or loss on the basis of the facts and circumstances that exist at the date of
     transition to Ind ASs.


Fair value measurement of financial assets or financial liabilities at initial
recognition
D20    Despite the requirements of paragraphs 7 and 9 of this Ind AS, an entity may
       apply the requirements in paragraph B5.1.2A (b) of Ind AS 109 prospectively
       to transactions entered into on or after the date of transition to Ind ASs.

Decommissioning liabilities included in the cost of property, plant and
equipment
D21    Appendix `A' to Ind AS 16 Changes in Existing Decommissioning,
       Restoration and Similar Liabilities requires specified changes in a
       decommissioning, restoration or similar liability to be added to or deducted
       from the cost of the asset to which it relates; the adjusted depreciable amount
       of the asset is then depreciated prospectively over its remaining useful life. A
       first-time adopter need not comply with these requirements for changes in
       such liabilities that occurred before the date of transition to Ind ASs. If a
       first-time adopter uses this exemption, it shall:
       (a)     measure the liability as at the date of transition to Ind ASs in
               accordance with Ind AS 37;
       (b)     to the extent that the liability is within the scope of Appendix A of
               Ind AS 16, estimate the amount that would have been included in the
               cost of the related asset when the liability first arose, by discounting
               the liability to that date using its best estimate of the historical risk-
               adjusted discount rate(s) that would have applied for that liability




                                          31
                   over the intervening period; and
       (c)         calculate the accumulated depreciation on that amount, as at the date
                   of transition to Ind ASs, on the basis of the current estimate of the
                   useful life of the asset, using the depreciation policy adopted by the
                   entity in accordance with Ind ASs.
D21A An entity that uses the exemption in paragraph D8A(b) (for oil and gas assets
     in the development or production phases accounted for in cost centers that
     include all properties in a large geographical area under previous GAAP)
     shall, instead of applying paragraph D21 or Appendix A of Ind AS 16:
       (a)         measure decommissioning, restoration and similar liabilities as at the
                   date of transition to Ind ASs in accordance with Ind AS 37; and

       (b)         recognise directly in retained earnings any difference between that
                   amount and the carrying amount of those liabilities at the date of
                   transition to Ind ASs determined under the entity's previous GAAP.



Financial assets or intangible assets accounted for in accordance with Appendix
C to Ind AS 115
D22    A first-time adopter may apply the following provisions while applying the
       Appendix C to Ind AS 115:
       i)  Subject to paragraph (ii), changes in accounting policies are accounted
           for in accordance with Ind AS 8, i.e. retrospectively.
       ii) If, for any particular service arrangement, it is impracticable for an
           operator to apply this Appendix retrospectively at the date of transition
           to Ind ASs, it shall:
             (a)       recognise financial assets and intangible assets that existed at the
                       date of transition to Ind ASs;
             (b)       use the previous carrying amounts of those financial and
                       intangible assets (however previously classified) as their carrying
                       amounts as at that date; and
             (c)    test financial and intangible assets recognised at that date for
                    impairment, unless this is not practicable, in which case the
                    amounts shall be tested for impairment as at the start of the
                    current period.
       iii) There are two aspects to retrospective determination: reclassification and
            remeasurement. It will usually be practicable to determine
            retrospectively the appropriate classification of all amounts previously
            included in an operator's Balance Sheet, but that retrospective
            remeasurement of service arrangement assets might not always be
            practicable. However, the fact should be disclosed.




                                             32
Borrowing costs
D23    [Refer to Appendix 1]
D24    [Deleted]

Extinguishing financial liabilities with equity instruments
D25    A first-time adopter may apply the Appendix E of Ind AS 109 Extinguishing
       Financial Liabilities with Equity Instruments from the date of transition to
       Ind ASs.

Severe hyperinflation
D26    If an entity has a functional currency that was, or is, the currency of a
       hyperinflationary economy, it shall determine whether it was subject to
       severe hyperinflation before the date of transition to Ind ASs. This applies to
       entities that are adopting Ind ASs for the first time, as well as entities that
       have previously applied Ind ASs.
D27    The currency of a hyperinflationary economy is subject to severe
       hyperinflation if it 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.
D28    The functional currency of an entity ceases to be subject to severe
       hyperinflation on the functional currency normalisation date. That is the date
       when the functional currency no longer has either, or both, of the
       characteristics in paragraph D27, or when there is a change in the entity's
       functional currency to a currency that is not subject to severe hyperinflation.
D29    When an entity's date of transition to Ind ASs is on, or after, the functional
       currency normalisation date, the entity may elect to measure all assets and
       liabilities held before the functional currency normalisation date at fair value
       on the date of transition to Ind ASs. The entity may use that fair value as the
       deemed cost of those assets and liabilities in the opening Ind AS Balance
       Sheet.
D30    When the functional currency normalisation date falls within a 12-month
       comparative period, the comparative period may be less than 12 months,
       provided that a complete set of financial statements (as required by paragraph
       10 of Ind AS 1) is provided for that shorter period.

Joint arrangements
D31    [Deleted]
Joint ventures - transition from proportionate consolidation to the equity
method


                                         33
D31AA When changing from proportionate consolidation to the equity method, an
      entity shall recognise its investment in the joint venture at transition date
      to Ind ASs. That initial investment shall be measured as the aggregate of
      the carrying amounts of the assets and liabilities that the entity had
      previously proportionately consolidated, including any goodwill arising
      from acquisition. If the goodwill previously belonged to a larger cash-
      generating unit, or to a group of cash-generating units, the entity shall
      allocate goodwill to the joint venture on the basis of the relative carrying
      amounts of the joint venture and the cash-generating unit or group of cash-
      generating units to which it belonged.
D31AB The balance of the investment in joint venture at the date of transition to Ind
       ASs, determined in accordance with paragraph D31AA above is regarded
       as the deemed cost of the investment at initial recognition.
D31AC     A first-time adopter shall test investment in joint venture for impairment
          in accordance with Ind AS 36 at the date of transition to Ind ASs,
          regardless of whether there is any indication that the investment may be
          impaired. Any resulting impairment shall be recognised as an adjustment
          to retained earnings at the date of transition to Ind ASs. The initial
          recognition exception in paragraphs 15 and 24 of Ind AS 12 Income Taxes
          does not apply when the entity recognises an investment in a joint venture
          resulting from applying the transition requirements for joint ventures that
          had previously been proportionately consolidated.
D31AD If aggregating all previously proportionately consolidated assets and
       liabilities results in negative net assets, an entity shall assess whether it has
       legal or constructive obligations in relation to the negative net assets and,
       if so, the entity shall recognise the corresponding liability. If the entity
       concludes that it does not have legal or constructive obligations in relation
       to the negative net assets, it shall not recognise the corresponding liability
       but it shall adjust retained earnings at the date of transition to Ind ASs.
       The entity shall disclose this fact, along with its cumulative unrecognised
       share of losses of its joint ventures at the date of transition to Ind ASs.
D31AE     An entity shall disclose a breakdown of the assets and liabilities that have
          been aggregated into the single line investment balance at the date of
          transition to Ind ASs. That disclosure shall be prepared in an aggregated
          manner for all joint ventures at the date of transition to Ind ASs.
D31AF     After initial recognition at the date of transition to Ind ASs, an entity shall
          account for its investment in the joint venture using the equity method in
          accordance with Ind AS 28.


Joint operations--transition from the equity method to accounting for assets
and liabilities
D31AG When changing from the equity method to accounting for assets and



                                          34
          liabilities in respect of its interest in a joint operation, an entity shall, at the
          date of transition to Ind ASs, derecognise the investment that was
          previously accounted for using the equity method and any other items that
          formed part of the entity's net investment in the arrangement in
          accordance with paragraph 38 of Ind AS 28 and recognise its share of each
          of the assets and the liabilities in respect of its interest in the joint
          operation, including any goodwill that might have formed part of the
          carrying amount of the investment.
D31AH An entity shall determine its interest in the assets and liabilities relating to
      the joint operation on the basis of its rights and obligations in a specified
      proportion in accordance with the contractual arrangement. An entity
      measures the initial carrying amounts of the assets and liabilities by
      disaggregating them from the carrying amount of the investment at the
      date of transition to Ind ASs on the basis of the information used by the
      entity in applying the equity method.
D31AI     Any difference arising from the investment previously accounted for using
          the equity method together with any other items that formed part of the
          entity's net investment in the arrangement in accordance with paragraph
          38 of Ind AS 28, and the net amount of the assets and liabilities, including
          any goodwill, recognised shall be:
          a.    offset against any goodwill relating to the investment with any
                remaining difference adjusted against retained earnings at the date of
                transition to Ind ASs, if the net amount of the assets and liabilities,
                including any goodwill, recognised is higher than the investment
                (and any other items that formed part of the entity's net investment)
                derecognised.
          b.    adjusted against retained earnings at the date of transition to Ind
                ASs, if the net amount of the assets and liabilities, including any
                goodwill, recognised is lower than the investment (and any other
                items that formed part of the entity's net investment) derecognised.
D31AJ     An entity changing from the equity method to accounting for assets and
          liabilities shall provide a reconciliation between the investment
          derecognised, and the assets and liabilities recognised, together with any
          remaining difference adjusted against retained earnings, at the date of
          transition to Ind ASs.
D31AK The initial recognition exception in paragraphs 15 and 24 of Ind AS 12
      does not apply when the entity recognises assets and liabilities relating to
      its interest in a joint operation.


Transition provisions in an entity's separate financial statements
D31AL     An entity that, in accordance with paragraph 10 of Ind AS 27, was
          previously accounting in its separate financial statements for its interest in



                                            35
            a joint operation as an investment at cost or in accordance with Ind AS
            109 shall:
            a.   derecognise the investment and recognise the assets and the liabilities
                 in respect of its interest in the joint operation at the amounts
                 determined in accordance with paragraphs D31AG ­D31AI.
            b.   provide a reconciliation between the investment derecognised, and
                 the assets and liabilities recognised, together with any remaining
                 difference adjusted in retained earnings, at the date of transition to Ind
                 ASs.


Stripping costs in the production phase of a surface mine
D32   A first-time adopter may apply the Appendix B of Ind AS 16 Stripping Costs
      in the Production Phase of a Surface Mine from the date of transition to Ind
      ASs. As at transition date to Ind ASs, any previously recognised asset
      balance that resulted from stripping activity undertaken during the production
      phase (`predecessor stripping asset') shall be reclassified as a part of an
      existing asset to which the stripping activity related, to the extent that there
      remains an identifiable component of the ore body with which the
      predecessor stripping asset can be associated. Such balances shall be
      depreciated or amortised over the remaining expected useful life of the
      identified component of the ore body to which each predecessor stripping
      asset balance relates. If there is no identifiable component of the ore body to
      which that predecessor stripping asset relates, it shall be recognised in
      opening retained earnings at the transition date to Ind ASs.


Designation of contracts to buy or sell a non-financial item
D33   Ind AS 109 permits some contracts to buy or sell a non-financial item to be
      designated at inception as measured at fair value through profit or loss (see
      paragraph 2.5 of Ind AS 109). Despite this requirement an entity is permitted
      to designate, at the date of transition to Ind ASs, contracts that already exist
      on that date as measured at fair value through profit or loss but only if they
      meet the requirements of paragraph 2.5 of Ind AS109 at that date and the
      entity designates all similar contracts.


Revenue from contracts with customers


D34   A first-time adopter may use one or more of the following practical
      expedients when applying Ind AS 115 retrospectively:


      (a)        for completed contracts, an entity need not restate contracts that begin
                 and end within the same annual reporting period;



                                            36
       (b)   for completed contracts that have variable consideration, an entity may
             use the transaction price at the date the contract was completed rather
             than estimating variable consideration amounts in the comparative
             reporting periods; and
       (c)   for all reporting periods presented before the beginning of the first Ind
             AS reporting period, an entity need not disclose the amount of the
             transaction price allocated to the remaining performance obligations
             and an explanation of when the entity expects to recognise that amount
             as revenue.


D34AAFor any of the practical expedients in paragraph D34 that an entity uses, the
     entity shall apply that expedient consistently to all contracts within all
     reporting periods presented. In addition, the entity shall disclose all of the
     following information:
       (a)    the expedients that have been used; and
       (b)   to the extent reasonably possible, a qualitative assessment of the
              estimated effect of applying each of those expedients.


D35    A first-time adopter is not required to restate contracts that were completed
       before the earliest period presented. A completed contract is a contract for
       which the entity has transferred all of the goods or services identified in
       accordance with previous GAAP.
Non-current assets held for sale and discontinued operations
D35AAInd AS 105 requires non-current assets (or disposal groups) that meet the
     criteria to be classified as held for sale, non-current assets (or disposal
     groups) that are held for distribution to owners and operations that meet the
     criteria to be classified as discontinued and carried at lower of its carrying
     amount and fair value less cost to sell on the initial date of such
     identification. A first time adopter can:
       (a)   measure such assets or operations at the lower of carrying value and
             fair value less cost to sell at the date of transition to Ind ASs in
             accordance with Ind AS 105; and
       (b)   recognise directly in retained earnings any difference between that
             amount and the carrying amount of those assets at the date of transition
             to Ind ASs determined under the entity's previous GAAP.




                                         37
Appendix E
Short-term exemptions from Ind ASs
[Refer to Appendix 1]




                              38
Appendix 1
Major differences between Indian Accounting Standard (Ind AS) 101
First-time Adoption of Indian Accounting Standards and IFRS 1
Note: This Appendix is not a part of the Ind AS 101, First-time Adoption of
Indian Accounting Standards. The purpose of this Appendix is only to
highlight major differences between Ind AS 101 and corresponding
International Financial Reporting Standard (IFRS) 1, First-time Adoption of
International Financial Reporting Standards.
1.   Paragraph 3 of Ind AS 101 specifies that an entity's first Ind AS financial
     statements are the first annual financial statements in which the entity adopts
     Ind ASs in accordance with Ind ASs notified under the Companies Act, 2013
     whereas IFRS 1 provides various examples of first IFRS financial statements.
2.   Paragraph 4, 4A, 4B, 23A and 23B of IFRS 1 provide various examples of
     instances when an entity does not apply this IFRS. Ind AS 101 does not
     provide the same. In order to maintain consistency with paragraph numbers of
     IFRS 1, the paragraph number is retained in Ind AS 101.
3.   IFRS 1 defines previous GAAP as the basis of accounting that a first-time
     adopter used immediately before adopting IFRS. However, Ind AS 101 defines
     previous GAAP as the basis of accounting that a first-time adopter used for its
     reporting requirement in India immediately before adopting Ind AS.
     The change makes it mandatory for Indian entities to consider the financial
     statements prepared in accordance with existing notified Indian accounting
     standards as was applicable to them as previous GAAP when it transitions to
     Ind ASs.
4.   Under IFRS 1, para C4(c) requires, the first-time adopter shall exclude from its
     opening Ind AS Balance Sheet any item recognised in accordance with
     previous GAAP that does not qualify for recognition as an asset or liability
     under Ind ASs. The first-time adopter shall account for the resulting change in
     the retained earnings as at the transition date except in certain specific instances
     where it requires adjustment in the goodwill. In such specific instances where
     IFRS 1 allows adjustment in the goodwill, under Ind AS 101 it can be adjusted
     with the Capital reserve to the extent such adjustment amount does not exceed
     the balance available in Capital reserve.
5.   Certain IFRS 1 exceptions to the retrospective application of other Ind ASs
     refer to transitional provisions of other IFRSs. However Ind ASs does not
     provide transitional provisions, accordingly transitional provisions in other
     IFRSs have been incorporated in the paragraphs B8A, B8B, B8D, B8E, B8EA
     and B8EB of Ind AS 101.
6.   Certain exemptions in Appendix D of IFRS 1 refer to transitional provisions of
     other IFRSs. However Ind ASs do not provide transitional provisions,
     accordingly wherever considered an appropriate transitional provision in other
     IFRSs has been incorporated in the respective exemptions in Appendix D of
     Ind AS 101. The following paragraphs in IFRS 1 provide the transitional

                                          39
     provisions of other IFRSs which are included in Ind AS 101:
     (i)   Paragraph D4 includes the transitional provisions of IFRS 4 Insurance
           Contracts;
     (ii) Paragraph D9 includes the transitional provisions of IFRIC 4
          Determining whether an Arrangement contains a Lease;
     (iii) Paragraph D22 includes the transitional provisions of IFRIC 12 Service
           Concession Arrangements;
     (iv) Paragraph D25 includes the transitional provisions of IFRIC 19
          Extinguishing Financial Liabilities with Equity Instruments;
     (v)   Paragraph D31 includes the transitional provisions of IFRS 11 Joint
           Arrangements;
     (vi) Paragraph D32 includes the transitional provisions of IFRIC 20 Stripping
          Costs in the Production Phase of a Surface Mine; and
     (vii) Paragraph D34 and D35 includes the transitional provisions of IFRS 15
           Revenue from contracts customer.
7.   IFRS 1 provides for various optional exemptions that an entity can seek while
     an entity transitions to IFRS from its previous GAAP. Similar provisions have
     been retained under Ind AS 101. However, there are few changes that have
     been made, which can be broadly categorized as follows:
     (a) Elimination of effective dates prior to transition date to Ind ASs. IFRS 1
          provides for various dates from which a standard could have been
          implemented. For example,
           Paragraph D2 of IFRS 1 provides that an entity is encouraged, but not
           required, to apply IFRS 2 Share-based Payment to equity instruments
           that were granted on or before 7 November 2002 or to instruments that
           were granted after 7 November 2002 and vested before the later of (a) the
           date of transition to IFRSs and (b) 1 January 2005. However, for Ind AS
           101 purposes, all these dates have been changed to coincide with the
           transition date elected by the entity adopting these converged standards
           i.e. Ind AS.
     (b) Deletion of borrowing cost exemptions not relevant for India:
           Paragraph D23 of IFRS 1 provides for transitional adjustment requiring
           companies to apply the provisions of IAS 23 to be applied prospectively
           after the transition date to Ind ASs. However, this was considered as not
           relevant in Indian situation as AS 16 always required an entity to
           capitalize borrowing costs as compared to IAS 23 where it provided an
           option to expense out such borrowing cost.
     (c)   Inclusion/modification of existing exemptions to make it relevant for
           India. For example,
           1. Paragraph D7AA has been added to provide for transitional relief
              from the retrospective application of Ind AS 16: Property, Plant and
              Equipment. Paragraph D7AA, provides an entity option to use

                                        40
               carrying values of all such assets as on the date of transition to Ind
               ASs, in accordance with previous GAAP as an acceptable starting
               point under Ind AS. Paragraph 27AA has been included in Ind AS
               101 which requires the disclosure that if an entity adopts for first time
               exemption the option provided in accordance with paragraph D7AA,
               the fact and the accounting policy shall be disclosed by the entity
               until such time that those items of property, plant and equipment,
               investment properties or intangible assets, as the case maybe, are
               significantly depreciated, impaired or derecognised from the entity's
               Balance Sheet.
           2. Paragraph D9AA has been added to provide for transitional relief
               while applying Ind AS 17: Leases. D9AA provides an entity to use
               the transition date facts and circumstances for lease arrangements
               which includes both land and building elements to assess the
               classification of each element as finance or an operating lease at the
               transition date to Ind ASs. Also, if there is any land lease newly
               classified as finance lease then the first time adopter may recognise
               assets and liability at fair value on that date; any difference between
               those fair values is recognised in retained earnings.
           3. Paragraph D35AA has been added to provide for transitional relief
               while applying Ind AS 105 - Non-current Assets Held for Sale and
               Discontinued Operations. Paragraph D35AA provides an entity to
               use the transitional date circumstances to measure such assets or
               operations at the lower of carrying value and fair value less cost to
               sell.
8.    Appendix E of IFRS 1 on `Short-term exemptions from IFRSs', however Ind
      AS 101 does not provide the above said short-term exemption. In order to
      maintain consistency with Appendix numbers of IFRS 1, the Appendix E is
      retained in Ind AS 101.
9.     IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with
      Customers are effective from annual period beginning on or after January 1,
      2018 and January 1, 2017, respectively. As the above said standards are not yet
      effective consequential amendments due to these standards have not been
      incorporated in current version of IFRS 1. However, corresponding Ind AS 109
      Financial Instruments and Ind AS 115 Revenue from Contracts with Customer
      have been issued with consequential amendments in other IFRS including IFRS
      1. Accordingly, there consequential amendments Ind AS 109 and Ind AS 115
      have been incorporated in Ind AS 101.
10.   Different terminology is used in Ind AS 101, e.g., the term `Balance Sheet'
      is used instead of `Statement of financial position' and `Statement of profit
      and loss' is used instead of `Statement of comprehensive income'.




                                          41

 
 
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