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50 First time adoption of Ind AS
method, has been considered as the new gross carrying amount of that financial asset or the financial liability at
the date of transition to Ind AS.
d Impairment of financial assets: (Trade receivables and other financial assets)
At the date of transition to Ind ASs, the Company has determined that there significant increase in credit risk since
the initial recognition of a financial instrument would require undue cost or effort, the Company has recognised 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).
Optional exemptions;
A. Deemed cost-Previous GAAP carrying amount: (PPE and Intangible)
Ind AS 101 permits a first-time adopter to 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 AS, measured as per the previous
GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning
liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment
property covered by Ind AS 40 Investment Properties.
Accordingly, the company has elected to measure all of its property, plant and equipment, intangible assets and investment
property at their previous GAAP carrying value
B. Lease:-
Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance
with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides
an option to make this assessment 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.
The company has elected to apply this exemption for such contracts/arrangements.
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 exemptio.
D. Investment in subsidiaries, jointly controlled entities and associates :
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
Notes on the consolidated financial statements
for the year ended 31 March 2017