152 / 236
150
50 First time adoption of Ind AS
(contd...)
C. Business combinations:
Ind AS 101 allows a first-time adopter not to apply Ind AS 21 Effects of changes in Foreign Exchange Rates retrospectively
for business combinations that occurred before the date of transition to Ind AS. In such cases, where the entity does not
apply Ind AS 21 retrospectively to fair value adjustments and goodwill, the entity treats them as assets and liabilities of the
acquirer entity and not as the acquiree.
The company has elected to apply this exemption.
D. Investment in subsidiaries, jointly controlled entities and associates in Standalone financial statements :
At transition date, entity may choose to account for its investment at:
- Cost as per Ind AS 27 determined at transition date.
- Fair value as per Ind AS 113 (only on transition date).
- Previous GAAP carrying amount.
- Fair value as per Ind AS 109 (recurring fair valuation without recycling).
The company has elected to apply previous GAAP carrying amount exemption.”
E. Share based payments :
A first-time adopter is encouraged, but not required, to apply Ind AS 102 to equity instruments that vested before the
date of transition to Ind ASs. If a first-time adopter elects to apply Ind AS 102 to equity instruments that vested before the
date of transition to Ind ASs, 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.
Under Previous GAAP, a company could have used the intrinsic value method or the fair value method. However, Ind AS
102 requires all types of share-based payments and transactions to be measured at fair value and recognised over the
vesting period.
However Ind-AS 101 provides that requirements of Ind-AS 102 can be applied to the options that have been vested only
if the company has publically disclosed the fair value. For options that have not yet vested as at the transition date the
company will need to apply the requirements of Ind-AS 102 retrospectively.
Notes on the standalone financial statements
for the year ended 31 March 2017